National Review Online's the Corner posted an update on the progress of the Financial Reform law that Congress passed last summer. When Congress passed the Financial Reform bill, much was made of the fact that this bill would put in place regulations that would prevent the kind of financial meltdown that occurred in 2008. There was one glaring problem with the bill--it did nothing to regulate Fannie Mae and Freddie Mac. The Dodd-Frank financial reform bill did, however, require that the White House release a report to Congress detailing how Fannie Mae and Freddie Mac could be reformed. They were required by the law to release the report yesterday--the report has not yet been released.
The article reports:
"The Obama Administration's repeated inability to propose a plan to reform Fannie Mae and Freddie Mac calls into question their commitment to taxpayer protection and their ability to effectively govern on this issue," Hensarling added. "After more than $150 billion in Fannie and Freddie bailouts, we can no longer afford to allow the Administration to kick the can down the road."
"Financial Services Committee chairman Spencer Baucus (R., Ala.) also criticized the administration, saying in a statement that "the Democrats always offer an excuse for not meeting deadlines, even those they themselves impose.""
There really is not a need for the report--anyone with any common sense could write it in five minutes. Until the government stops underwriting risky mortgages and wondering why there are so many foreclosures, I suspect we will not be immune from further financial challenges.
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