Radtke: “Abolish Freddie & Fannie”
By E M Barner | Wednesday, June 15th, 2011 | PoliticsIn a recent press release, Jamie Radtke, candidate for the Republican nomination for U.S. Senate, called for the abolition of mortgage giants Fannie Mae and Freddie Mac. Radtke promised to work for legislation that transitions Freddie and Fannie into completely privately owned entities and “get(s) the government out of the mortgage banking business.” She also called former Senator George Allen out for refusing to support reform of Freddie and Fannie while accepting campaign contributions from their lobbyists.
Government Sponsored Enterprises (GSEs), Freddie and Fannie, were a driving force behind the housing crisis that, in large part, precipitated the current recession. Taxpayer bailouts of these GSEs could reach $363 billion, according to a Federal Housing Finance Agency report released last year.
From his powerful position as ranking member, and later Chairman, of the House Financial Services Committee, former Congressman Barney Frank protected Fannie and Freddie from legislation designed to increase scrutiny of its operations. While the Bush administration pushed for reform of the GSEs, Frank not so subtly accused Republicans of racism and of not wanting low-income individuals to be able to obtain affordable housing. Regulations and mandates pushed by Frank forced banks to make housing loans to individuals who could not afford them, loans that were backed by the GSEs. In 2003, he famously claimed “These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis,” and stated that reports of instability were exaggerated. Frank also drew fire for helping his then boyfriend, Herb Moses, obtain a job with Fannie Mae and voting on legislation affecting the GSE while the two were involved.
Frank wasn’t the only legislator holding up reform of Freddie and Fannie, however. In the then Republican-controlled Senate (2005), a reform measure sponsored by Chuck Hagel (R-NE), passed through the banking committee on a party line vote. However, Sen. Majority Leader Bill Frist never allowed a vote on the bill. Allen was not one of the 26 senators to sign a letter to Frist asking him to bring the bill to the floor, according to an AP story from 2008. Allen was apparently lobbied against the bill by a major campaign donor.
In this situation, Allen did nothing unusual or unethical. There could have been any number of reasons why he did not support regulatory reform of Freddie and Fannie, none of them nefarious. Clearly Radtke has the benefit of hindsight on this matter. However, the fact remains that while 26 US Senators tried to get the Senate to act on a regulatory reform measure, Allen did nothing.
Today, even Barney Frank is on record saying that Freddie and Fannie “should be abolished.” Of course, unlike Radtke proposes, Frank wouldn’t divest the taxpayers of these failed enterprises and return them to the private sector. For those who believe in government above all else, the solution to one failed big government enterprise is doubled down government control.
The question remains, with the benefit of hindsight and knowing Fannie and Freddie’s role in the housing crisis, what would George Allen propose for the federal government’s role in the mortgage markets? What regulations? What mandates on banks? What oversight? What backing for loans? I’ve looked at his recently released “Blueprint” and I don’t see anything on this important issue.
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E M Barner, the blogger formerly known as DCH / De Civitate Hominis (“concerning the city of man”), writes from a Northern Virginia perspective. Barner has been active in Republican politics and policy since 1994 – as a grassroots volunteer, party leader, and professional.
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10 Responses to "Radtke: “Abolish Freddie & Fannie”"
Allen won’t be pilloried by Kaine on this issue. Allen is very fortunate that there is no strong challenger in the primary though. This is not the only issue that Allen is very vulnerable on from the right. He is wise to remain silent. Let’s face it. People voting for Allen are really voting against Kaine and vice versa.
Valentinus, why would Tim Kaine NOT go after Allen for this? Democrats already blame the entire bad economy on Bush. You don’t think he won’t lay out the facts on how in addition to all of his other bad moves, George Allen refused to help Sen. Hagel? He was warned that there were issues THIS IS NOT JUST HINDSIGHT!! M Really, you think Hagel did all that manuvering to pressure Frist for kicks?
Kaine could easily show a lobby connection, easy point to George Allen doing NOTHING despite knowing about it and warned of issues, easily remind the voters of the horrible aftermath of Freddie & Fannie and blame the whole mess on Allen and the Republicans.
Hagel tried and tried but Allen refused to take the conservative stance. Allen was raising funds for a presidential run and the mean green was too good to pass up.. Never cut off a sugar daddy, even if it is in opposition to your stated positions. Allen says one thing and does another. How can anyone with a straight face say Allen did not commit the transgressions against conservatives when his voting record is out there for all to see. This is the kind of BIG DOLLAR $enator that inspired the birth of the tea party movement. Do not think for a moment the tea party will lay dormant this time rinos. Georgie has been caught feeding at the trough enough to make miss piggy blush and squeal.
Stick a fork in him.. he’s done
Brit,
You are confusing Radtke (or other Republicans) with Kaine. Show me where the Dems have criticized Repubs on Fannie and Freddie. Fannie and Freddie were excluded from Dodd Frank by Dems. The big libs James Johnson and Franklin Raines would cry if the Dems started to make an issue with them. Haven’t you heard Obama say it was two wars and taxcuts? That’s their story and they are sticking to it.
Valentinus, I might agree if this election was nationwide. Tim Kaine is not saddled with Jim Webb’s voting record and is free to play the conservative Democrat. In fact, he already is if you read his response to Allen’s “blue print”. Talking about cuts etc. Kaine can say whatever he wants in Virginia. The Democrats won’t care, they’d be thrilled to hold the seat because the GOP put up a proven disappointment like George Allen up against him.
Kaine will act conservative and at the same time accuse Allen of wanting to gut medicare. The fact that Allen refused to take a stand on Paul Ryan’s plan is no shelter. Why do I say that? As they called him a spineless hypocrite for not taking a stand in the “cushy seats” video, they quoted him saying things favorable to the Ryan plan. Kaine will try to scare seniors with medicare and he will indeed use Fannie & Freddie as an example of how Allen and the Republicans are responsible for all our problems.
If Kaine can stress some irresponisble acts by George Allen in order to dampen the fiscal conservative turnout, he will.
Brit (& Turbo),
Anything Kaine can do Allen can do too. Kaine can’t escape the DNC gig. You know I’m not saying this because any Allen enthusiasm. Just being realistic. Allen is no more finished than Romney is at this point despite their baggage.
We need a person who is interested in making changes for the PEOPLE she/he represents. We need a person with morals and a sincere desire to make sound decisions based on facts. Jamie Radtke is that person.
The last paragraph of this interesting article contains questions that merit answers, and none are forthcoming.
If you want more of the same, more of what you’ve been getting, vote for George Allen.
This election, send a clear message to Washington:
We Love You! We love you so much we’re sending back one of your own! Please give us more of your sound fiscal policies, sound foreign policy, sound money, insider enrichment, social engineering! Woo Hoo! Go Virginia!
Uh.. Jamie Jacoby.. if you are trying to say something, go ahead and say it.
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