Barney Frank caused or allowed the Subprime Mortgage Crisis

Posted by PITHOCRATES - December 3rd, 2011

Week in Review

The worst financial crisis since the Great Depression happened under Barney Frank’s watch.  As did one of the worst housing bubbles.  And what exactly were Barney Frank’s responsibilities during these crises (see Barney Frank’s retirement: What it means for House Financial Services panel by Felicia Sonmez posted 11/28/2011 on The Washington Post)?

The news that Rep. Barney Frank will retire at the end of his term in 2012 sets off an internal scramble among Democrats to succeed the longtime Massachusetts lawmaker as the ranking member on the Financial Services Committee.

Since 2003, Frank has served as the top Democrat on the powerful 61-member panel, the second-largest of the House’s 20 standing committees. (Armed Services is the largest, with 62 members.) The committee has broad oversight over the banking, housing, insurance and securities sectors as well as over federal monetary policy and international finance.

Oh.  He was responsible for the Congressional oversight for the banking, housing (as in Fannie Mae and Freddie Mac), insurance and securities sectors.  Big responsibility.  And he did a piss-poor job.  As demonstrated by the reckless mortgage lending of the banking industry facilitated by Fannie and Freddie that caused the housing bubble that led to the subprime mortgage crisis.  Wow.  Rarely can we trace so much destruction back to one man.  And his punishment for ruining the American economy and so many people’s retirement?  Not a thing.  In fact, the guy who was so bad at financial oversight co-wrote the Dodd-Frank financial regulation legislation for better oversight.  Unbelievable.

Someone can climb over your fence with a ladder, put it up to the deck of your above the ground pool, ignore the ‘do not dive’ sign and dive into the shallow end of the pool.  And if this trespasser beaks his neck guess who gets in trouble?  The pool owner.  Because he didn’t secure that ‘attractive nuisance’ enough to prevent that accident from happening.  But Barney gets off scot-free.  How fair is this?  Not very.  But that’s life.  In the U.S. House of Representatives.

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