Maxine Waters, House Financial Services Committee

Today The Hill ran an article about Maxine Waters, who is set to become Chairperson of the House Financial Services Committee, of which she has been a member for years. Not only will she continue her long standing battle for affordable housing, she also will be investigating the President's personal banking history. She might do well to review the history of her efforts to enable affordable housing, particularly as it involved Government Sponsored Enterprises (GSEs) Fannie May and Freddie Mac.
 
It was not widely reported, but the general consensus on the "sub-prime" mortgage market collapse, which became the mortgage market collapse, which then became the banking system collapse in 2007/2008 originated in Fannie Mae and Freddie Mac, which the private lending institutions ultimately used as virtual keys to the national treasury. Fannie and Freddie kept lowering their lending standards for home mortgages, which enabled them to buy more and more mortgages from private lending institutions, thus providing the those institutions with more and more capital to make more and more home loans. While the official intent was to increase affordable housing, the private institutions knew it was discriminatory (illegal) to have different sets of qualifying requirements based on race. So everyone, including those buying multiple homes as investment properties, were able to get more and larger home loans with virtually none of their own money involved. Then, investment banks began to "securitize" these mortgages, mixing good ones with bad ones, so buyers really didn't know the risk factors of securities they were buying in huge numbers. Eventually, defaults on these home loans began to pile up to the extent that many private institutions, as well as Fannie and Freddie were facing bankruptcy. The entire scheme collapsed.
 
Although no criminal charges were ever filed, it became clear there was collusion between the private sector and public sector to enable what turned out to be massive fraud which resulted in the financial crash of 2008. In reviewing what happened, it members of both the Bush administration and the Obama administration were involved, as well as senior members of Congress.
 
In 2004, Maxine Waters was one of several Democrats on the House Financial Services Committee, the Congressional oversight committee for Fannie and Freddie. A regulator from Bush's OFHEO, also charged with regulating Fannie and Freddie, testified before the Congressional oversight committee telling them that Fannie and Freddie were in trouble, in part because of suspected accounting fraud by Fannie CEO Franklin "Frank" Raines. The video link below shows us excerpts from that hearing, in which the Democratic members attacked the regulator, even implying he was a racist (Raines is black). It was also discovered later that Barney Frank, the Democratic Ranking Member, was cohabitating with another Fannie Mae executive, Herb Moses, a serious conflict of interest. 
 
Why no one, of either party, took any serious action for at least 2 years after this hearing is anyone's speculative guess. So much was known, but so little was done. Finally, in 2008, Raines was fined $24.7 million in a civil case, charged with receiving as much as $90 million in fraud based bonus income. The mainstream media gave this entire scandal scant coverage considering the enormous impact it had, not only in the US, but world-wide. Worse, the federal government has never explained to the American people, in simple terms, what caused this financial disaster, nor why no criminal charges against anyone were ever filed. Watch the entire video, it's very revealing.
 
https://www.youtube.com/watch?v=Yga7TlsA-1A&t=3sch?v=Yga7TlsA-1A&t=3s

Comments

Ken Added Nov 8, 2018 - 5:31pm
At least twice that i know of, but maybe a 3 time loser she was considered "the most corrupt person in congress"
 
And she is one of the better ones taking over!
 
Adam Schiff as Intelligence (what a contradiction there) chairman  Jerry Nadler will become Judiciary Chairman (He campaigned on impeachment)
 
And it goes on and on.  It is a comedy of corruption.  You could do an article on how bad every one of them are.
 
Not saying that Republicans are saints, but they aren't the snakes that these folks are.
Jim Stoner Added Nov 8, 2018 - 5:39pm
Max42:  Just submit your article once--the site will not confirm it, but it will post.  At least that's my experience.
 
As far as the housing crisis which led to the Great Crater is concerned, I would agree the GSE's have their share of the blame, along with the banks making bad mortgages (poor due diligence), the investment banks (fraudulent representation of the product they were selling), and most especially, the rating agencies (paid by lenders to rubber stamp bad product).   Underwriting standards were a joke then; after the crash they got way too tight (which constricted the economy's recovery), and now they are sliding back down again.   There is room for bipartisan agreement on housing policy, but it has not risen to the level of being a current issue.   Maybe it will take another massive screw-up in that system.
FacePalm Added Nov 8, 2018 - 5:53pm
If i were Trump, i'd have Maxine Waters monitored discreetly everywhere she goes, and build a corruption case on her, then pounce when the time is ripe.  She will be unable to resist bribes in that position, given her history.  Given her favorite mantra, finding a lawful reason to do so should be child's play.  And i TRULY hope she introduces a Bill of Impeachment in the House, so that she can be fully exposed as the inveterate idiot she has chosen to become.
 
Same with the Schiffhead.  Anyone who is so easily deceived by Russian disc jockeys should be just as easily set up and knocked down.
 
FBI had no problem doing it to Gullible Gilley; Stupid Schiff should easily fall to any number of ploys.
 
Hard to run ANYthing from prison, ain't it?  Granted, other democrats would take their places, but there's absolutely no way they could be worse.
George N Romey Added Nov 8, 2018 - 6:39pm
Many of her good friends in Congress made money on the GSEs. It’s one reason Obama retreated from prosecuting Wall Street. She isn’t going to do squat other than run her mouth like all politicians do.
Jeffry Gilbert Added Nov 8, 2018 - 9:16pm
Like our resident racist Gregory Mad Max Waters is a walking poster child for the efficacy of "The Bell Curve". The "Peter Principle" too. 
goldminor Added Nov 13, 2018 - 2:13am
Jim Stoner ...I noticed that the last post which I made appears to have posted multiple times to my account. Is that an automatic draft saver that I am seeing? I was careful to only click once so I was surprised to see what looked like multiple posts of the one story.
goldminor Added Nov 13, 2018 - 2:16am
I am surprised that there is no outcry over her negative remarks stating what she was going to do once she gains her chairmanship position. Isn't going in with such preconcieved ideas antithetical to being fair minded? Look at how they have painted Whitaker for making a few comments in public as a private citizen that they now claim means that he must recuse himself. Nuts!
Ken Added Nov 13, 2018 - 2:31am
Like our resident racist Gregory Mad Max Waters is a walking poster child for the efficacy of "The Bell Curve". The "Peter Principle" too. 
 
LOL Jeffry, I thought I was the only one calling out his racism.  Everyone else seems to take it in stride, but it disgusts me how hateful he is.
 
I think the democrats overplayed their hand under obama which led to 2010 and 2014 and 2016, I think they are going to go insane in the house for the next 2 years, they are already announcing ridiculous things they say they plan on doing.  I don't think they realize the vocal extreme left is also an extreme minority and if they go insane, they are going to get smothered and stomped in 2020.  They should have seen it due to what they did to Kavanaugh - probably cost them the senate...
Flying Junior Added Nov 13, 2018 - 5:13am
So the mortgage crash was caused by one person with some authority over Fannie Mae and Freddie Mac?  Am I up to speed?  You guys always seem to be so well-informed it's difficult to keep up.
 
This is nothing more than a right wing hatefest.  Let's see some more posts on white genocide.

Flying Junior Added Nov 13, 2018 - 5:16am
I think they are going to go insane in the house for the next 2 years, they are already announcing ridiculous things they say they plan on doing. 
 
As far as I understand, the only plans are to protect the Mueller investigation and perhaps use the power of subpoena to make preliminary findings available to the American people.  Is that ridiculous to you?  You don't have to be a political science major to guess why Trump chose this big, tall fathead to replace Sessions.
 
Do you not believe that the findings should be made public?  Smacks of fascism.  What are you guys afraid of?
FacePalm Added Nov 14, 2018 - 12:55pm
FJ-
Did you happen to catch Ken's post on the 85+ subpoenas they plan to issue, and the plethora of "investigations" they plan to launch?
 
The "big, tall, fathead" loves Justice, it seems, which is a Good Thing; we'll see if he takes action to back up his words very soon, and does his part to drain the swamp of criminals.  May Whitaker have far more success than Sessions, who apparently did little more than whinge about marijuana and ignoring the Will of the People in States.  But i could be wrong; SOMEbody spent a lot of time putting together 57k sealed indictments, allegedly.  Time will tell.
goldminor Added Nov 14, 2018 - 9:27pm
Flying Junior ...no one sated that Maxine was solely responsible, no one. So take a look in the mirror on that claim as it reflects badly on your lack of objectivity, imo.
Flying Junior Added Nov 15, 2018 - 12:52am
Ken's post is phenomenal.  I had not seen it earlier.  It seems to be a little bit over the top.  Do we have this list on good authority?  It seems like more of a wish list than a to-do list to me.
 
Goldminor,
 
Why bring Waters into the discussion whatsoever?  Whatever.  The crazies hate Maxine Waters and I am still working on understanding exactly why this is.  I guess if any one person is to blame, wouldn't it be Bill Clinton for playing nice with the republicans?  You'll forgive me, I don't really read as much about all of this crap as the typical conservative blogger.
 
Regulation my brothers.  That's what it is all about.  Banks need to be regulated.  This whole thing stinks of condemning those who sought to allow less wealthy Americans to buy homes.  I've heard it before.  It's a variation on blaming the brown people.  Maybe if the home loans that they were offered had been better regulated instead of being enticing low-low variable rates followed by a big jump in interest rates and/or balloons we all would have been a lot safer.  I say rein in the usurous investor/banking class.  That's what government is for.


goldminor Added Nov 15, 2018 - 11:50am
F J ...weren't you refering to Waters in this comment "...So the mortgage crash was caused by one person with some authority over Fannie Mae and Freddie Mac?  ..". If not, then I misinterpreted your intent. Also, I have never been very politically oriented during most of my life, myself.
 
In fact I had stopped voting for quite a few decades because I was disgisted with special interests groups overriding the will of the people after elections. The only reason why I got so involved in 2016 was due to the threat posed by the AGW people in gaining any more power. So I spoke up with vigor, and then voted.
goldminor Added Nov 15, 2018 - 11:53am
Speaking of mad socialist ideas look at Bernie Sanders latest proposal. ...https://www.cnbc.com/2018/11/15/bernie-sanders-targets-walmart-calls-for-15-minimum-wage.html
 
He is calling for banning stock buybacks unless the company pays its workers $15/hour. The land of the free is in danger. Not that I am a fan of Wal Marts. Quite the opposite as I have always refused to shop there for other reasons.