Thursday, May 06, 2010

Barney Frank to White House – Fight GOP Attacks on Freddie & Fannie – Lenders Immediately Report Losses – Will Barney go the Way of Obey?

Freddie Mac went to the public trough again this quarter asking for yet another bailout of 10.6 billion dollars. The mortgage lender, which has been under the protection of Barney Frank (D-MA) (See May, 2006 Bloomberg Article here where Frank clearly states there is no crisis re: Freddie Mac and Fannie Mae:

``I don't think we are facing any kind of a crisis'' or ``threat to the Treasury,'' Democratic Representative Barney Frank of Massachusetts said. At the same time, investors in the two companies shouldn't assume the government guarantees the companies' ability to pay debts, he said.”
In his variety of rolls on the House Finance Committee, Frank has covered Freddie and Fannies back - they are also currently exempt from new financial regulatory rules being proposed by Democrats.

Frank, just prior to the report of additional massive losses on the part of his favorite lender, (which in essence started the entire financial disaster vis a vis mortgage meltdowns see 2006), zipped of a two page memo to the White House demanding that the Administration defend Freddie and Fannie against Republicans who would have them adhere to the same rules as other financial institutions. in his memo, Frank again stated that his favorite lenders were doing just fine, especially since the government had taken over.

From Politico: ”Frank made the case that Freddie and Fannie are being managed responsibly, and aren’t doing further economic damage to themselves now that they’ve been taken over by the government.”

Immediately following Franks memo, the government run, responsibly managed Freddie and Fannie reported losses of 6.69 Billion according to Market Watch.

There should be a restraining order against Frank’s ability to meddle further in the financials of this nation, if the man is not coherent or lucid enough to understand that his pet projects are massive failures, especially when managed by the “government”.
Frank, who is up for reelection in 2010, has been rumored to be considering following in the footsteps of his close ally, Chris Dodd (D-CT) who decided not to seek reelection in 2010. Several months ago, sources in Massachusetts had indicated that Frank may, effectively, ‘retire’. In fact, the “rumor of Frank’s retirement” hit the airwaves recently through right-wing talk show hostess, Laura Ingram, who "Tweeted" the rumor, making for quick denials from Frank. That said, those particular sources also indicated that should Frank not run in 2010, he would pass the torch to an individual seen by local Democrats as very electable, a charismatic South Coast Mayor.

Frank is still denying a retirement, however, so were many other incumbents who have announced they will not seek reelection, most recently, David Obey who announced yesterday that he would not be returning to Congress in 2010. This left Wisconsin Democrats scrambling for replacements. (Obey was nationally known as the father of the Stimulus - Frank as the Father of the Mortgage Meldown.) One would hazard to guess that Frank would make sure that his successor would be able to at least make a decent attempt to fend off GOP opposition.

Running against Frank in the 4th District: Earl Sholley ( who has already launched a media campaign and Sean Bielat ( running against Sholley in the Republican primary. When was the last time Frank faced not one, but two GOP candidates? Never. Sholley a fiscal and social conservative, and Bielat who is a moderate conservative, will keep Frank’s name out in front of the 4th District voters from now until September, (when one or the other will be sent by local Republicans and Independents through to the November election against Frank). This blog has had contact from both the Sholley Campaign, as well as directly from Sean Bielat immediately following his announcement to run. Both men are committed to the campaign, although Sholley entered the race immediately following the 2008 election, Bielat entered after Scott Brown carried the district. In that particular race it will be all about the ground game, and name recognition in the district. In any event, having a primary with two Republicans knocking on doors throughout the district may make Frank’s summer unbearable – which would be reason enough to pass the torch onto a younger man. However, that in itself would, at this point in the game, may be a tactical error on the part of the State DNC (see Martha Coakley), which will then hand the seat held so long by Frank to the GOP.

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