Texas (R) Congressman Hensarling introduces Legislation to repeal anachronistic CRA program; noting that CRA addressed a legitimate need 30 years ago, but it now serves as a vehicle to allow liberal activist groups to shakedown banks... Today, CRA is a costly anachronism. Full story
-Must View Video: excellent argument...
OUT IN 2010; All who vote against scrapping this redundancy!
-Hope it includes Dem's Community Reinvestment act of 2009.
Note: The Community Reinvestment Act of 1977 was supposed to prevent banks from taking deposits in one neighborhood and making loans in other neighborhoods. But since President Clinton took office, the federal government has largely ignored the law and instead relied on massive threats against banks to force them to loan more to favored groups.
As former Assistant Treasury Secretary Paul Craig Roberts observed, 'The Justice Department is simply trying to establish by consent decree [also known in the Clinton administration as 'Alternative Dispute Resolution', or ADR] a system of racial quotas in lending regardless of credit risks."
Source: (Washington Times; James Bovard [page A16] 01.19.99)
Democrats enjoyed a considerable loyalist Constituency at the expense of our markets... I point to Fannie Mae (FNM.N) and Freddie Mac (FRE.N)... which posed a significant problem because they held lines of credit with the U.S. Treasury, many investors considered their debt second only in quality to government debt; and the companies enjoyed a funding advantage over purely private-sector competitors...
-Democrat Corporatists came to enjoy their nest...
(R) Rep Hensarling, in a letter (backed by 70 Republicans) hit Geithner over multi-million dollar pay packages for executives at mortgage-finance firms Fannie Mae (FNM.N) and Freddie Mac (FRE.N)... More.
Democrat's Fannie Mae and Freddie Mac have Congressional charters to support mortgage finance by buying mortgages from lenders and repackaging them as securities for investors... And after 2005 (17) formal Bush attempts to rein them in, were stopped by the Democrats... Bush was forced to place them in a government conservatorship; as either firm could have caused unacceptable turmoil in U.S. housing markets...
-Bush inherited this from the Democrats... And Obama who forced Banks to Loan, inherited the fall-out during Bush term...
