The ham-handed Congressman Barney Frank of Massachusetts continues to take care of his friends and supporters before the interests of all the American people.
Frank, more than any other public official, is responsible for triggering the worldwide financial crisis. As the lead Democrat on financial services in the House of Representatives he pressured fellow Democrats at Fannie Mae and Freddie Mac to buy uncreditworthy mortgage loans from banks and other mortgage lenders, package them up and sell them around the world with the implicit guaranty of the United States government behind them. When the Bush Administration realized the extent of the risk building at the two government-sponsored organizations and sought reform legislation in 2003, 2004, 2005 and 2006, Frank was in the frontlines blocking legislative action, assuring one and all that everything was just hunky dorry. The mushrooming of subprime mortgage loans blew up the housing bubble and when it exploded, the defaults in the subprime mortgage packages owned by foreign governments and investors sent panic roaring around the globe. Trillions of dollars have been lost, including hundreds of billions of dollars in savings by ordinary Americans.
Today's Wall Street Journal reports that as the first round of bailout money was being doled out to banks Barney Frank was pushing the Treasury to put millions into a small Boston minority bank known for its poor banking practices. Treasury officials privately complained, but did the bidding of the powerful Chairman of the House Financial Services Committee.
Read "Political Interference Seen in Bank Bailout Decisions."
