In 2003, the Bush administration recommended the creation of a new agency within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac. Representative Barney Frank, the ranking Democrat on the Financial Services Committee, replied “These two entities – Fannie Mae and Freddie Mac – are not facing any kind of financial crisis.”
In 2006, Senator John McCain cosponsored the Federal Housing Enterprise Regulatory Reform Act of 2005, which would have created an independent agency with oversight authority over Fannie and Freddie. At that time, McCain said, “If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.” This bill never made it out of the Banking Committee. Democrat Senator Chris Dodd, then the ranking member of the Banking Committee and now its chair, has received the most political payola from lobbyists who were paid to keep regulators off the backs of Fannie and Freddie. Barack Obama has received the second most $$$ from these same lobbyists.
Barack Obama has repeatedly fed at the trough of Fannie Mae and Freddie Mac lobbyists who had a vested interest in aggressively resisting oversight. Now he thinks he can blame John McCain for the resulting crisis. What was Obama saying about putting lipstick on a pig?