Re: John McCain’s Fannie Mae/Freddie Mac Warnings - MAY 2006

From CityData.com

Bill S-190 never became law -so co-sponsoring it is pretty meaningless.

Politicians are NOTORIOUS for co-sponsoring and speaking out in favor of legislation that appeases the masses, but which they know will never be enacted as law. It earns them brownie points with a gullible electorate.

Back in the early nineties - when the Democrats controlled Congress - the House actually had something called a Discharge Petition. It was a brilliant stroke of chicanery.

The way it worked was congressmen could submit legislation, or co-sponsor legislation, that was popular with their consituents, even though they had no intention of it becoming law. The proposed bill would go before a House Committee and would not come out of committee for a full vote unless a majority of committee members signed the Discharge Petition. The beauty of it was that the signatures on the petition were kept secret!!! That way you could sponsor a bill, and let it die in committee by not signing the petition!!! And no one would know you secretly opposed the bill by not signing the petition!!!

The bill you quote that McCain sponsored and spoke in favor of was probably one of those pieces of legislation that is supported only for the political pandering value it has, and which the co-sponsors know will never be approved.

FACTS:

1) Republicans held the majority in Congress when this bill was introduced.

2)The bill was an attempt to privatize regulatory agencies. Hence, Democratic resistance to it. Hence, even Republicans voting against it.

3) The bill did nothing to address fraud and tighten oversight. Hence, Democratic resistance to it. Hence, even Republicans voting against it.

Text from the bill itself:

"Excludes the Federal Home Loan Banks from certain securities reporting requirements."

Nice try, though.

One should not forget that the guy labeled as responsible for the mortgage mess along with Bill Clinton was Cuomo and that is who McCain proposes to install as S.E.C. Secretary.

On the other hand, before the ObamaNation folks wet their pants, there is also this:

In the four years since he stepped down as Fannie Mae's chief executive under the shadow of a $6.3 billion accounting scandal, Franklin D. Raines has been quietly constructing a new life for himself. He has shaved eight points off his golf handicap, taken a corner office in Steve Case's D.C. conglomeration of finance, entertainment and health-care companies and more recently, taken calls from Barack Obama's presidential campaign seeking his advice on mortgage and housing policy matters...When Daniel H. Mudd stepped in to succeed Raines after his ouster, Mudd promised a House committee that the days "of arrogant, defiant, 'my way' Fannie Mae" would end. Congress has recently moved forward on legislation that would create stronger federal oversight of Fannie Mae and Freddie Mac.

On the Outside Now, Watching Fannie Falter - washingtonpost.com

Bottom line - it is really hard to blame or praise either one, no matter what the rhetoric and posturing.  They are all a bunch of crooks in a rigged game.

DQ