Mercury Rising 鳯女

Politics, life, and other things that matter

Barney Frank Lays Down The Law

Posted by Phoenix Woman on November 2, 2008

Congressman Frank reminds everyone that bailout funds must be for lending. Period:

Companies receiving public money under a U.S. government financial rescue program must use it for lending or they will be violating the law, the powerful chairman of the U.S. House of Representatives Financial Services Committee said on Friday.

“Any use of the these funds for any purpose other than lending — for bonuses, for severance pay, for dividends, for acquisitions of other institutions, etc. — is a violation of the terms of the act,” Rep. Barney Frank, a Massachusetts Democrat, said in a statement.

Frank was referring to a $700 billion financial rescue law passed by Congress earlier this month. The Treasury Department plans to use $250 billion of that amount to inject capital into financial institutions to unfreeze credit markets and restore lending.

A growing number of Democratic lawmakers have demanded more restrictions on banks receiving government money.

More like this, please.

4 Responses to “Barney Frank Lays Down The Law”

  1. Jamie said

    Dismantle Freddie and Fannie NOW
    Get Barney Frank the %$!@$ OUT of the Financial Services committee
    Barney Frank, Pelosi’s Democrats, the revolving door to executive positions at Fannie and Freddie, and the Democrat’s own subprime based derivative securities are the ONLY reason for our present mortgage crisis.
    Getting rid of Fannie and Freddie will allow the FHA and the rest of the federal housing agencies to resume their work lending money. We do not need Freddie and Fannie or Barney Frank in order for the federal government to lend to 1st time property owners. We never did. Lending programs existed before the GSE’s. This is a bad dream.

  2. Charles II said

    You know, Jamie, we have looked at culpability in the mortgage crisis, again and again.

    The best financial minds say that Fannie and Freddie had very little to do with mortgage crisis. The facts square with that:
    1. Fannie and Freddie don’t originate mortgages.
    2. The default rate on mortgages held by Fannie and Freddie was low.
    3. Barney Frank and the Democrats were not in charge of Congress during the key years when the mortgage system went off the rails.

    So, basically, you don’t know what you’re taking about; you have nothing except RNC talking points to guide you; and you’re full of baloney.

  3. Reggie J said

    It is not Barney Frank, Pelosi’s Democrats, Fannie and Freddie, that stuck with the burden of the bailout. Its the hard working tax paying citizen of the United States that are screwed
    in this deal. The hard working tax paying citizen of the United States are the one’s that should be bailed out.

    Everyone has their own opinion of the situation ,but my question is what can we do about it now?

  4. Charles II said

    Reggie, there are two steps:
    1. Elect Democrats
    2. Make them deliver on their rhetoric

    At Mercury Rising, we have been on the mortgage story for almost two years (see here and here, for example), urging people to look at the costs of various approaches toward preventing a complete meltdown. We concluded that the cheapest, most effective way to deal with it was at the level of mortgages, not at the level of banks. We recognized the fairness issues: people don’t want to bail out speculators and they don’t want to bail out people who committed fraud to get a mortgage they plainly couldn’t afford with the hope of flipping the house. We concluded there are fairly simple ways to keep a bailout fair.

    But we also discovered something else. When it comes down to who caused the crisis, there may be fingerprints from members of both parties on the cookie jar– but the Republicans were the ones who were overwhelmingly responsible for the crisis. This is because they controlled key regulatory agencies during the relevant time period. Any efforts they made at improving regulation were desultory, for show and not to protect the nation. And many of them, including many still in the Congress, are corrupt.

    This crisis threatens the economic foundation of this country. It will impoverish– it already has impoverished– all of us. We need to start working together, as Americans rather than as Democrats and Republicans.

    But the first step is to rip out the corruption, and that corruption is at this point centered in the Republican Party.

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