11.28.2011 0

Rep. Barney Frank will retire

Rep. Barney Frank (D-MA), whose name is on the controversial Dodd-Frank Financial Reform legislation, has announced that he will not seek re-election. This would result in Maxine Waters becoming the ranking member on the House Financial Services Committee.

ALG President Bill Wilson had the following to say about Frank’s retirement:

“Barney Frank has been a staunch defender of Fannie Mae and Freddie Mac throughout the buildup of the housing bubble, even accusing critics of exaggerating the risks posed to the Government Sponsored Enterprises in the 2000’s.  Under legislation Frank voted for in 1992, Fannie and Freddie only needed $900 of capital behind a $200,000 mortgage they guaranteed.”

“From 2007 until the end of 2010, Frank was the chairman of the House Financial Services Committee, and when the crisis hit was blindsided by the bankruptcy of the GSEs.  Frank led the House’s efforts to bail out Fannie and Freddie and other financial institutions in 2008.  To his departure, American taxpayers say good riddance.

“When the time came to reform the financial system, Frank excluded Fannie and Freddie from his signature legislation, even though the GSEs were ground zero of the financial crisis.  Frank ignored the warning signs of the crisis, and then when it hit, did everything in his power to cover for Fannie and Freddie.  Meaningful financial reform would have been to unwind government involvement in housing finance, instead of affirming it.

“Frank leaves behind a disastrous record that will have consequences for years if not decades to come.  His departure comes about twenty years too late.”

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