Let the Record Show...

So a recent poll reported on CNN suggests that Americans 2/1 believe the current banking crisis is the fault of Republicans. What most Americans don't do is actually research the historical record. I must admit, when I look at eight years of the Bush Adminstration, I don't see that he personally took very much issue with the lending practices of these greedy corporations. Had I receieved a telephone survey, I probably would have laid blame on both parties.

But the record doesn't lean that way. Not at all. In fact, one candidate actually co-signed a bill for regulatory reform in our lending companies. That candidate? John McCain. The creator and additional cosigners? All Republicans. The bill, and three others just like it? Killed on the floor of the Senate, led by Democrats. Democrats who actually were taking kick-backs for their re-elections.

Here's an excerpt from an address given by John McCain on the Senate floor. Read it. Read it. Read it. Read it. Read it. Read it. Read it. Read it and learn something.

The United States Senate
May 25, 2006

Section 16

Mr. President, this week Fannie Mae's regulator reported that the company's quarterly reports of profit growth over the past few years were "illusions deliberately and systematically created" by the company's senior management, which resulted in a $10.6 billion accounting scandal.

The Office of Federal Housing Enterprise Oversight's report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae's former chief executive officer, OFHEO's report shows that over half of Mr. Raines' compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.

The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator's examination of the company's accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.

For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs--and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO's report solidifies my view that the GSEs need to be reformed without delay.

Friends, I'm not asking you to vote for John McCain. For the record, I might not even be voting for him myself. I'll decide after the debates. But in the meantime, at least become an informed voter. Here's information on the other bills led by Republican Chuck Hagel, NE:

GovTrack.us. H.R. 1461--109th Congress (2005): Federal Housing Finance Reform Act of 2005, GovTrack.us (database of federal legislation) (accessed Sep 22, 2008)

GovTrack.us. S. 190--109th Congress (2005): Federal Housing Enterprise Regulatory Reform Act of 2005, GovTrack.us (database of federal legislation) (accessed Sep 22, 2008)

GovTrack.us. S. 1100--110th Congress (2007): Federal Housing Enterprise Regulatory Reform Act of 2007, GovTrack.us (database of federal legislation) (accessed Sep 22, 2008)