And when did Republicans, in control for almost all of 1994-2006 when the vast majority of the problem was building, propose changing this?
sweetness-light.com
September 11, 2003
The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac which together have issued more than $1.5 trillion in outstanding debt is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
WELL THE DEMOCRAT CONGRESS OF 06...or is that just an 'accident'
Frank and Dodd proped up Fannie and Freddie, prevented any investigation of their accounting practices. Major dem policy makers are involved are the news is buried by the mainstream media.
The dems passed the 'mark to market' legislation which accelated and propagated the financial death spiral we are currently experiencing. Alan Greenspan supported and pushed the leveraging of the investment banks using derivatives based on the risky mortages.