Below is a report of S.190 back in 2005 where some members of the Senate, Elizabeth Dole Chief among them, did the right thing and tried to lasso the craziness of Fannie Mae and Freddie Mac and got slapped down for it. The bill would have really helped to not bring us to where we are today. It got gunned down like a dog in the street and never came before the Senate for a vote. All the debate was about what types of assets could be held in the portfolios of Fannie and Freddie. The folks who voted "Yea" were trying to help by limiting the whacko subprime junk the government secured enterprises could hold. The "No" votes are those culpable for the mess we have now, they wanted the party to continue on, and now you are on the hook for it. Scroll down and know their names. The worst part is it is the same people who voted "No" that are going to conduct Congressional hearings to search for the guilty...when it is them all along.
And for my friends in North Carolina, remember this tale when you go to vote November 4.
Elizabeth Dole took the lead in trying to help stop the mess we are in.
Federal Housing Enterprise Regulatory Overhaul/Vote to Report
Create a new regulator, the Federal Housing Enterprise Regulatory Agency (FHERA), to oversee the Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks.
The bill would give the new regulatory agency combined oversight for the safety and soundness, as well as the housing mission, of the three housing-related government-sponsored enterprises (GSEs). The agency would have the ability to close down a failing GSE.
The bill also would create a Federal Housing Enterprise Board to advise the director of FHERA. The members of the board would include the director as well as the Treasury secretary, HUD secretary and chairman of the Securities and Exchange Commission (SEC).
It would allow the director to increase minimum capital requirements under certain conditions, including situations in which it is determined the benefits of increased capital outweigh any adverse impact to housing markets.
The director would have the authority to approve a GSE's entry into new lines of business.
Under the bill, if the FHERA determines that a GSE or one of its executives has violated the law or other regulations, the GSE or executive could receive civil penalties that would amount to a fine for each day of violation.
The bill would require a GSE to report in a timely manner to the director of FHERA if the GSE discovers that it has bought or sold a fraudulent loan. It also would allow the FHERA to require reports from the GSEs that could include information on financial statements and conditions, management, activities and operations.
The measure would require that the FHERA have an inspector general that would hire accountants, economists or other financial examiners and audit annually the affordable housing activities of Fannie Mae and Freddie Mac's affordable housing programs.
The FHERA would have the authority to prohibit or limit excessive severance packages for employees.
Under the legislation, the president would no longer appoint the board of directors for Fannie Mae and Freddie Mac.
The bill also would establish a Federal Home Loan Bank Finance Corporation to take over the duties and responsibilities held by the Office of Finance of the Federal Home Loan Bank System.
Member banks would elect the board of directors for the Federal Home Loan Bank.
Reported favorably to the full Senate (as amended) 11-9: R 11-0; D 0-9; I 0-0; July 28, 2005.
Allard (Colo.) *
Enzi (Wyo.) *
Hagel (Neb.) *
Bayh (Ind.) *
Corzine (N.J.) *
Johnson, Tim (S.D.) *
Reed, J. (R.I.)
Schumer (N.Y.) *
Stabenow (Mich.) *