A new ad released this week ties far left Democrat Barney Frank (D-MA) to the subprime disaster.
Via The Blaze:
From the video: BARNEY FRANK IS ON THE ROPES. His lead has dwindled into single digits against a very strong opponent, Marine and businessman Sean Bielat. Yet polls show many voters in his district are not aware of his pivotal role in the collapse of Fannie Mae and Freddie Mac, and the collapse of the U.S. housing market which resulted. Thousands of his constituents need to know how Frank systematically blocked reform of Fannie and Freddie that led to financial losses or foreclosure for their families or neighbors.
For the record…
As reported earlier at Big Government, in May 2007 Barney Frank and the Democrat-controlled House passed GSE reform legislation. Legislation which was adamantly opposed by the Treasury Dept. and the Bush Administration for limiting federal oversight of Fannie and Freddie’s mortgage holdings. Legislation which included Frank’s pet project, an “affordable housing” fund backed by tax payers.
Let it also be noted that going into 2007 Fannie and Freddie had never in history been allowed to purchase or finance sub-prime mortgages. But under pressure from Democrats in Congress (including Frank), they were granted this authority by regulators in September 2007.
Advertisement - story continues below
Let it also be noted that in 2007 Frank aggressively pushed to increase the maximum loan limits which could be underwritten by the GSE’s. A move which would ultimately transfer tens of billions of dollars of loan liabilities from private financial institutions to tax payers.
It’s no wonder that even after the total collapse of Fannie and Freddie in 2008, at an ultimate cost to tax payers which could exceed $400B, Barney Frank is still adamantly opposed to legislation which would prevent any further federal bailouts of the GSE’s. For Democrats like Frank, continued control over Fannie and Freddie represents the effective nationalization of the entire mortgage industry. It’s a dream come true for those who wish to use the power of the federal government to implement their desired social and redistributive policies.
The Fannie Mae and Freddie Mac bailout could end up costing American taxpayers $363 billion.
Barney Frank should not be running for Congress. He should be jailed.