I heard Democratic supporters blasting away against John McCain for his “Bush” like financial policies and how only Barack Obama has the answers to the current economic crisis facing us due to the collapse of financial giants like Freddie Mac, Fannnie Mae, Bear Sterns, and AIG .
In his speech, which I have included below, McCain somehow managed to predict the entire collapse that has forced the government to bail out (with tax-payer money) Fannie Mae and Freddie Mac and now, AIG.
McCain pointed out the falsification of financial records to benefit executives, including Franklin Raines and Jim Johnson, both of whom are now financial advisers to Barack Obama.
Senator McCain also pointed out the power of their lobbying efforts to forestall oversight over their business practices. He finishes with the warning that proved all too prescient over the past few days and weeks.
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.
Now I ask you … who is more intuned to the financial pulse of the nation and the problems it is having. Senator John McCain, who warned us five years ago, of this disaster … or, Barack Obama, the Messiah who will step down from his Greek Temple and turn us all into truly holistic, enlightened, spiritual beings singing Kumbaya and chanting, “Hooooopppppeeeee …. Chhhhhaaaaannnngggeee …. Hooooopppppeeeee … Chhhhaaaannnngggeee!
Oh Yeah … About TrooperGate … Folks, this is a non-issue. If that Alaskan State Trooper tasered a 10-year old, he should have been fired. More importantly, the governor should have been pushing for it because the troopers work for, and represents, the governor. Regardless of whether the said trooper was a relative, in-law, or a total stranger … he should have been fired