Barney Frank Defends Fannie Mae

Barney Frank defends Fannie Mae in the democratic socialist publication In These Times:

In our attempt to reform and provide oversight of the Government Sponsored Enterprises of Fannie Mae and Freddie Mac, we had a proposal to take 5 percent of the after-tax profits and put it into affordable housing. The conservatives on the Financial Services Committee moved to strike that provision and they lost 53-17. They then got the Republican leadership not to strike it, but to impose outrageous restrictions so that radical groups like the Catholic Church could not participate in providing such housing and that groups that did provide it could not do any voter registration. They knew that would fail if it was voted on, so they put that into a manager's amendment that had many other things in it that were appealing to people, including a preference for the hurricane victims. Even then the Republican leadership wouldn't allow a vote on it.

Couldn't Barney Frank at least say something about Fannie Mae's books? Instead we get more central planning schemes for the housing market.You've got to admit housing would be a lot more affordable without the artificial leverage of Fannie Mae.But,then Barney Frank's friends wouldn't have the Fannie Mae foundation money.