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Raines Blames Regulators   December 9th, 2008
Even though he resisted regulation when he was CEO of Fannie Mae       


More observations...

Franklin Raines, the former CEO of Fannie Mae who was later involved in an accounting scandal at the company, said today that regulators shared blame for the credit crisis. Yet when he was in charge of Fannie Mae, he resisted regulation.


Raines, the chief executive of Fannie Mae from 1999 to 2004, said the roots of the credit crisis were in place long before the government sponsored enterprises began buying up risky loans...

Raines said that while Fannie and Freddie hold some responsibility for not appropriately managing their own credit risk, regulators must share in the blame. He argued that government officials -- he named the Federal Reserve, Federal Trade Commission, Department of Housing and Urban Development, among others -- were asleep at the switch. The regulators, he said, failed to use their authority to put a stop to extremely dangerous lending practices.

Yet back in 2003: http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63

''We welcome the administration's approach outlined today,'' Mr. Raines said. The company opposes some smaller elements of the package, like one that eliminates the authority of the president to appoint 5 of the company's 18 board members... The company is also likely to lobby against the efforts that give regulators too much authority to approve its products.

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