You mean the same guy who was against regulation last week?
i didnt hear your quote about being against regulation. Ive been glued to the media on this and Hank Greenberg former head of AIG, told his interviewer, regulation is not a replacement for Bad Management.
McCain, too often speaks two few words and assumes everyone will get it. Then he has to come back and add details or send out a rep. Thats too late. i hate the handlers in these campaigns. In 2005 he offered legislation, changes or more regulation to avoid this. WH offered changes in 2003 after a regulator blew the whistle. Its a matter of time, but the buck will land on the door step of Barney Frank and a few others. I did find that FYI as a rather odd. I have no doubt, McCain knew that Cox could not be fired, (iF thats the case) why bring it up. If Mac wins, I bet his appointments will not have that kind of heat shield.
FEDERAL HOUSING ENTERPRISE REGULATORY REFORM ACT OF 2005 — (Senate - May 25, 2006)
[Page: S5217] GPO's PDF
---Mr. McCAIN: "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.
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. 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.
I urge my colleagues to support swift action on this GSE reform legislation. 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. I urge my colleagues to support swift action on this GSE reform legislation. This warning was given just over two years ago. What happened to the legislation? It lingered in the Senate’s Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably - on July 28th, 2005. Then… it died!"
On January 26, 2005, Senator McCain cosponsored legislation that, had it been passed, might have averted the current debacle of mortgage loans. It might have saved the taxpayer billions and the fall of venerable financial institutions would not have happened. Senators Elizabeth Dole, John McCain and John Sununu had cosponsored it with Charles Hagel as the sponsor, all Republicans.
Lest anyone think that the Republicans are solely responsible for killing this resolution let us remember that the committee was not made up by far of only Republicans. One of the most prominent members of the Committee (and its current Chairman) was Senator Dodd, D- Connecticut. As we learned over the last couple of weeks, Senators Dodd and Obama turned out to be the biggest recipients of Fannie’s and Freddie’s gifts. It is obvious to anyone not ruled by emotions, it is obvious to anyone using logic and intellect, anyone capable of reading, understanding and sifting through all the boring details, that the economic policies revealed so far by the good Senator from Illinois are a harbinger of unmitigated disaster, if implemented.
Senator McCain with several of his colleagues, foresaw the financial crisis which, over the last two weeks, has sent shockwaves throughout the financial markets around the world. Senator Obama, though he only served the Senate for a mere total of 143 days and voted “present” 139 times, greatly benefited from that which Senator McCain has warned us against. It is obvious that Senator Obama’s run for the Presidency, instead of far more experienced non-corrupt Democrats, is nothing less than an insult, an affront to the intelligence of the average American voter. In fact, the underhanded tactics, the disregard for any decorum, the venom, the hatred displayed by the good Senator’s campaign and especially by his devoted followers amounts to an OBAMA(inti)-FADA on our country as a whole.
Maybe Senator McCain knows more about the economy than he admits.
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