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“Millions of Americans are struggling to make ends meet as unemployment rises, home values plummet, and everyday necessities like food and gas cost more than ever before. The Banking Committee has played a vital role both in revealing the pattern of lax regulatory oversight that helped to create this financial crisis, and in addressing related economic problems by crafting comprehensive legislation passed earlier this year. As Chairman, I will continue to work on solutions to help Americans weather this storm, including strengthening the housing sector, developing a second stimulus package, and of restructuring the regulation of the financial sector.”

Dodd (and other Democrats) specifically want to package this disaster into something that can be used to fuel populist rhetoric in this election. As they battle the Republicans and lose on the offshore drilling issue, the Democrats have the capability of convincing Americans that if home foreclosures were dealt with properly than these financial giants would not be collapsing. It’s a fair assumption, but how does addressing the housing problems and offering another stimulus package even begin to address the profound issues our economy faces as it trudges on?

Congressman Frank’s hearing has neither been postponed nor convened urgently. Frank would rather wait for the debris from the “financial hurricane” to settle, he would rather let the flood waters ebb and flow and then a week from today on Sept 25th hold a hearing.

Financial Service Committee to Hold Oversight Hearing on Treasury Action on Housing GSEs

Committee to hear testimony from Paulson, Bernanke, Lockhart and Montgomery

Washington, DC – House Financial Services Committee Chairman Barney Frank (D-MA), today announced that the committee will hold an oversight hearing to examine the actions announced last week by the Treasury Department regarding the housing government sponsored enterprises of Fannie Mae and Freddie Mac.

Witness List & Prepared Testimony:

The Honorable Henry M. Paulson, Jr., Secretary, U.S. Department of the Treasury
The Honorable Ben S. Bernanke, Chairman, Board of Governors of the Federal Reserve System
The Honorable James B. Lockhart III, Director, Federal Housing Finance Agency
The Honorable Brian D. Montgomery, Assistant Secretary for Housing - Federal Housing Commissioner, U.S. Department of Housing and Urban Development

I’m surprised Paulson will be attending given the fact that he does not have an “endless supply of time.” In fact, he is primarily why Dodd's hearing was postponed. One would have to wonder if this man is capable of doing his job if he cannot manage the time and tackle all of the tasks necessary to address the economic crisis we are in. If Paulson for some reason cannot make it, well, obviously we can turn to Mr. Bernanke. He can tell us whether we need to adjust inflation and/or bailout more banks this week or next week.

Frank’s statement on the Fannie Mae/Freddie Mac takeover raises some questions. Frank said he spoke to Paulson who informed him “that the Treasury Department intends to use the powers that Congress provided it to ensure the continued and stable functioning of Fannie Mae and Freddie Mac. I am pleased by the Secretary's strong reaffirmation that the vital roles these institutions play in our nation's housing markets must continue.”

Then, he closed saying, “While I don't know the details of the proposed interventions, I expressed to the Secretary that I will evaluate them in three dimensions: protecting the American taxpayers; restoring stability to the financial markets; and ensuring the continued availability of affordable housing.”

What could we possibly expect to gain from your hearing? It will no doubt just cost Americans taxpayer money because although Paulson was invited, you were “pleased by the Secretary’s strong reaffirmation that the vital roles these institutions play in our nation’s housing markets must continue.” Doesn’t that mean you support the way the institutions have been operating and are pleased that the Treasury would think it important to bailout Fannie Mae/Freddie Mac?

And what does it mean you wish to evaluate this in terms of “protecting the American taxpayers, restoring stability to the financial markets, and ensuring the continued availability of affordable housing”? Doesn’t any pursuit of these goals put you at odds with these financial giants whom you say play “vital roles” and “must continue” to do so?

You can diagnose how Dodd and Frank have handled Wall Street and the U.S. Treasury and call them “spineless.” Labeling them “spineless”, however, does not begin to address how they have been acting in collusion with Wall Street.

Note how much money Dodd and Frank have received from the banking industry and specifically, banking giants which have collapsed in the past weeks.

According to OpenSecrets.org, Chris Dodd has been the top recipient of Fannie Mae and Freddie Mac campaign contributions from 1989-2008. He has received a grand total of $165,400 ($48,500 from PACs, $116,900 from individuals).

In Dodd’s career, from 1989 to 2008, Dodd has accepted nearly 6 million from the “Securities & Investment” industry, which is 3.5 million more than he has taken in from “Lawyers/Law Firms.” The “Securities & Investment” industry is and has been his top campaign financier.

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Kevin Gosztola is a trusted author who publishes his writing regularly to OpEdNews and Open Salon and he is a 2009 Young People For Fellow. He is a documentary filmmaker currently completing a Film/Video degree at Columbia College in Chicago. (more...)

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