Not exaktly, Birdfeathers...

At the time the housing bubble burst, the two federally-created mortgage companies Fannie Mae (by FDR) and Freddie Mac (by Lyndon Johnson) held the majority of mortgage money secured ty single-family housing in the entire country.

Private lenders (by a small amount) held a minority of such loan money.

Fannie Mae and Freddie Mac answer to House and Senate committees and are not subject to the regulation that private lenders are.



"Alan Greenspan and the Federal Reserve Warned Congress – Greenspan Testified for McCain's Bill to Fix Fannie Mae and Freddie Mac in 2004 and 2005 – Democrats Voted No in House and in Senate Blocked it Along Party Lines!

Posted by iusbvision on September 23, 2008

Brit Hume covered this story on Sept 23 and came to the same conclusion as we did here at IUSB Vision.

The Republicans, in a bill co-sponsored by John McCain,  tried to change the Fannie Mae and Freddie Mac oversight regulations to those that are used by bank regulators. The bill to change the oversight rules was eek-ed by the Senate Committee in a party line vote with Democrats against it, but since Democrats were filibustering most significant legislation they didn't like the Republicans did not have the 60 votes to pass it. Not one Democrat would budge.

Freddie Mac and Fannie Mae answer to the banking committee's in Congress – NOT the Treasury Dept, and are monitored by a small agency called OFHEO to report to the committee's, so Congress KNEW this was coming and have for years...

If we fail to strengthen GSE regulation, we increase the possibility of insolvency and crisis. … As I concluded last year, the GSEs need a regulator with authority on a par with banking regulators, with a free hand to set appropriate capital standards, and with a clear and credible process sanctioned by the Congress for placing a GSE in receivership, where the conditions under which debt holders take losses are made clear."