In a previous post, I gave some background on how the Senate had warned against out-of-control lending. That included legislation in 1999 (S900) that put restrictions on loans and sounded warnings of a risky future. It also included action by McCain, as a key cosponsor of legislation, to reform Freddie Mac and Fannie May in 2006.
Recently, HumanEvents.com has obtained a copy of an internal Senate letter from May 5, 2006, calling the Senate Majority Leader Bill Frist and the Chairman of the Senate Banking, Housing and Urban Affairs Committee (Richard Shelby) to bring action on S190, the Federal Housing Enterprise Reglatory Reform Act.
The concern of the letter was the growth of Freddie and Fannie’s loans, by then touching over half the nation’s housing mortgages. “With the fiscal challenges facing us today (deficits, entitlements, pensions and flood insurance), Congress must ask itself who would actually pay this debt if Fannie or Freddit could not?”
The letter mentions recent testimony from all the major players, that this is well-thought-out legislation, and that it needed to be addressed soon, having cleared Sen Shelby’s committee. It reiterates that it is the role of Congress to “Take the necessary steps to ensure that these institutions benefit from strong and independent regulatory supervision, operate in a safe and sound manner, and are primarily focused on their statutory mission.”
The letter ends with a warning: “Congress must ensure that the American taxpayer is protected in the event either GSE should fail.”
No Democrat signed the letter.
For McCain to say he’s been fighting for our interests for years is in clear evidence. For the Democrats to claim otherwise is a misrepresentation of the truth.