This is a must see video (it is fast, so use the pause button generously).
I hope McCain/Palin will hit Barack Obama with this stuff in the future debates. It is a pity that McCain did not mention any of this, like, for example, his 2005 proposal, in today’s debate.
Links to some web pages from the video:
- Wiki: Community Reinvestment Act
- PolicyLink: Community Reinvestment Act
- The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities by Howard Husock
- First Union Capital Markets Corp., Bear, Stearns & Co. Price Securities Offering Backed By Affordable Mortgages
- Fannie Mae Announces Pilot to Purchase $2 Billion of ‘MyCommunityMortgage’ Loans; Pilot Lenders to Customize Affordable Products For Low- and Moderate-Income Borrowers
- Going Subprime: Will low-income homebuyers gain or lose when Fannie Mae and Freddie Mac move into the subprime lending market? by Allen J. Fishbein
- Fannie’s Perilous Pursuit of Subprime Loans: As It Tried to Increase Its Business, Company Gave Risks Short Shrift, Documents Show by David S. Hilzenrath
- Options expert calls Fannie, Freddie shares ‘worthless’ by John Spence
- Regulators Spin Public to Boost Fannie, Freddie by Jonathan Weil
- New Agency Proposed to Oversee Freddie Mac and Fannie Mae by Stephen Labaton (Published: September 11, 2003)
- John McCain Warned Of Mortgage Collapse In 2005 by Ken Taylor
- Chris Dodd’s Loan Problem (Slate)
- Obama turns to trusted political insider Jim Johnson for key campaign role by Doug Grow
- Barack Obama advisor Jim Johnson quits under fire by Johanna Neuman
- Advice from Raines (Politico)
- Countrywide Friends Got Good Loans. Mozilo Sought, Received Better Rates for Some; Problems for Fannie Mae? By GLENN R. SIMPSON and JAMES R. HAGERTY
- Senior Fannie Mae bosses resign (BBC)
- Fannie Mae and Freddie Mac Invest in Lawmakers (OpenSecrets.org)
- Top Recipients By $/Yr in Congress [same data as in the video, but different chart]
- Strong, silent type: OBAMA’S LEGAL CAREER (Chicago Sun-Times)
Other related links:
- Rush comments on the video from 2004 Congressional Hearing. Here is a “great” quote from Frank Raines: “Because banks don’t — there aren’t any banks who only have multifamily and single-family loans. These assets are so riskless that their capital for holding them should be under 2%.” — Looks like WaMu and Wachovia did take his advice 🙂 … wait, or was it Obama who was taking Raines’ advice?
BTW, here is the official transcript from the hearing shown in the video.
Update: NRCC has released a video about the Democrat’s (willful ?) blindness to the problems at Fannie Mae.
Update: Fox News: Saving Our Economy – What’s Next.