House Proceeding on Jul 31st, 2009 :: 2:42:15 to 2:47:50
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2:42:14 to 2:42:35( Edit History Discussion )

Barney Frank: future, because this bill recognizes change, bewe trust them northwestern bureaucrats. the speaker pro tempore: the gentleman from massachusetts. mr. frank: i yield myself five minutes. let me emphasize when the gentleman says, trust the shareholders. that's a co we are born-again shareholder advocates. in 2006 when the republicans

2:42:15 to 2:47:50( Edit History Discussion )
Speech By: Barney Frank

2:42:36 to 2:42:56( Edit History Discussion )

Barney Frank: controled this institution, they would not even on the financial service committees allow it to come up. we had a petition under the rules for the hearing. then we asked for a markup and they refused it. then in 2007, the gentleman from alabama, the gentleman from new jersey, they told us the gentleman from alabama told

2:42:57 to 2:43:17( Edit History Discussion )

Barney Frank: nuss 2007 th the free enterprise system was taking care of pay excess. we he said that in march of 2007. all of the problems we've had with pay in the interim, apparently were figments of our imagination. the gentleman from alabama had such confidence in the free enterprise system 2.5 yea ago, they told it it wouldn't

2:43:18 to 2:43:40( Edit History Discussion )

Barney Frank: happen. say on pay, now, it's not a big deal. it was a big deal enough for them to oppose it. they say to thgentlem from new jersey, here's the problem. no, it's not so much conscious acts of deregulation as nonregulation. what happened was new things grew up in the economy. particularly in the area of

2:43:41 to 2:44:01( Edit History Discussion )

Barney Frank: subprime mortgages and the way of packaging them and sending them around. some of us in the minority wanted to change it. there were party differences. in 2004, my friend from north carolina, mr. miller, who is here, he was early here. he spoke with people, the center for responsible lending in north carolina, who told us in 2004 trouble was coming.

2:44:02 to 2:44:22( Edit History Discussion )

Barney Frank: by the way, trouble was coming because of an excessive encouragement of low-income people to buy homes, not from the c.r. or from liberal democrats but from the bush administration. as the gentleman from texas, mr. hensarling, inserted an amendment which we adopted in 2002, the bush administration sped this up.

2:44:23 to 2:44:43( Edit History Discussion )

Barney Frank: in 2004, over my objection, among others, the bush administration directed fannie mae and freddie mac substantially to increase the number of subprime mortgages they were buying and for people below income. that's in the amendment that mr. hen ar ling offer wed adopted. some of us saw the problem at that point.

2:44:44 to 2:45:04( Edit History Discussion )

Barney Frank: i hadn't seen a problem fannie mae and freddie mac before but i did become worried. i joined the gentleman, mr. oxley, in trying to pass a bill, though i had a housing the floor, other republicans thought mr. oxley was too soft. we got into an intra-republican dispute on fannie mae and

2:45:05 to 2:45:25( Edit History Discussion )

Barney Frank: freddie mac where the house passed a bill, the house you should the republicans, supported by the overwhelming majority of republicans, every amendment offered to toughen it up rejected by the majority of republicans and the republican senate had a difference. ironically, the democrats in the senate agreed with mr. oxley. the republicans in the senate agreed with mr. bush.

2:45:26 to 2:45:47( Edit History Discussion )

Barney Frank: no bill. we also tried, as i said to do something about subprime lending. the gentleman from north carolina pusd for legislation. the gentleman from alabama to his credit, was somewhat interested in working with us on it. the republicans were overruled by mr. delay who used the rhetoric you're hearing today,

2:45:48 to 2:46:08( Edit History Discussion )

Barney Frank: keep the bureaucrats out of it, that was the prevailing philosophy of the republicans who ruled this house in 2004 and 2005. when some of us, including the bachus, tried to work on legislation to restrict subprime lending, mr. bachus was even chairman of the subcommittee, he was overruled. the chairman of the committee, . oxley, was told we don't do

2:46:09 to 2:46:32( Edit History Discussion )

Barney Frank: that, we believe in free enterprise. it was a conscious decision not to do anything. i yield to the gentleman from california. >> i'm finding understand your rapid speech. would you slow down? mr. frank: no, i'll tell you to the gentleman from calif he has to speed up.

2:46:33 to 2:46:53( Edit History Discussion )

Barney Frank: if he waits a couple of day, transcriber, he'll be able to read it, maybe we can get it put into large type so he can read it. now, since the gentleman interrupted me, that's what you

2:46:54 to 2:47:14( Edit History Discussion )

Barney Frank: try to do when you don't like what's being said. if we had been able to get the legislation done in 2005, we would have retarded the cris. there were conscious digs not to regulate. there was a bill passed in 1994 by a democratic congress replaced in 1995 by a republican congress which gave the federal reserve the

2:47:15 to 2:47:35( Edit History Discussion )

Barney Frank: authority to regulate mortgages of the kind that cause trouble. alan greenspan supported by the republicans in congress, refused to use that authority. it was when he continued to refuse that some of us tried to do something system of yes, that's where we t this. a republican commitment to never doing anything of the sort they're talking about now

2:47:36 to 2:47:50( Edit History Discussion )

Barney Frank: that let subprime mortgages flourish. the speaker pro tempore: pursuant to housresolution 697, the previous question is ordered on the bill as amended and on the amendment a in the nature of the substitute printed in house report 111-237, offered by mr. garrett