McCain Warned Congress About Fannie and Freddie

It turns out that one presidential candidate predicted the fallout from Fannie Mae and Freddie Mac and actually tried to do something to prevent it.  That candidate is John McCain.

Back in 2005, Senator McCain co-sponsored legislation know as the Federal Housing Enterprise Regulatory Reform Act of 2005.  Senator McCain's statement at the time indicated his concern with "illusions," "scandal," and "manipulation" on the part of management.  He also expressed concerns with an insufficient regulatory structure.  Senator McCain stated the following back in 2005:

If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.

Despite his urgings, the Federal Housing Enterprise Regulatory Reform Act didn't garner enough support to pass out of committee.

Senator McCain also spoke on the harmful and destructive role of lobbyists in corrupting Fannie and Freddie:

The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems.

Ahh, those pernicious Fannie Mae and Freddie Mac lobbyists.  Could they be the same lobbyists who gave Senator Obama $126,349, making him the second largest congressional recipient of Fannie Mae and Freddie Mac money between the years 1989-2008?  That's a pretty hefty amount of money considering Obama has only been in the Senate for four years!

Accepting huge amounts of money from entities regulated and bailed out by the Federal government sure doesn't sound like the kind of change for which we've been waiting.