Today's Washington Examiner posted an opinion piece on the current financial reform bill moving through Congress. The piece points out that the reform bill does not include any reform of either Fannie Mae or Freddie Mac, the two entities that essentially caused the financial meltdown.
The article points out:
"Either because Fannie and Freddie have long been incredibly lucrative sources of campaign cash and career protection for Democratic politicians - see, for example, Jim Johnson, Franklin Raines, and Barack Obama - or because they fear the political consequences of a full public airing of their culpability in protecting these two black holes for tax dollars, congressional Democrats refused to include any such reforms."
Senators John McCain, R-AZ, Richard Shelby, R-AL, and Judd Gregg, R-NH, have introduced an amendment to the current financial reform bill that would begin the reforming of Fannie Mae and Freddie Mac. In the first quarter of 2010 Freddie Mac has lost $8 billion. It has requested another $10.6 billion from the government and stated that it would need more in the future. The Obama Administration does not include Fannie Mae and Freddie Mac as part of its budget calculations--it does not want to deal with the impact that would have on the deficit.
Please follow the link to the Washington Examiner article to read the full story of Fannie Mae and Freddie Mac. Both entities are in desperate need of reform, and many in Congress are choosing to ignore the need.
Leave a comment