Barney Frank

" Bob Fenner and -- Marjorie -- fruit he and we had delighted to welcome without any further duke has -- Boston. Knows about this we've been talking about it and hoping that the guy who's on the front this guy Boston Globe photograph and all I -- hurricane Bonnie as an old. He takes over that -- bodies frank welcome congressman."

" Well I talked. Former colleague and almost hourly. Module gods and -- ignited say I am not a -- who -- work. How often like Tom. Of course former members -- how -- actually by the American really in -- continued to be the kind of incubator in many ways people wanted to -- doing important things in other place."

" That is so nice I don't know by -- let me digress just for fifteen. I'll take thirty seconds. Come when I went to law school it EU. Professor Clark ice. Pulled me aside dot oh. Less than perfect score on something and I made the mistake of saying the -- now. Professor and a member of the House of Representatives and he stopped me in my tracks and he said listen to me. So I was tiny frank don't even go the and he was on my review honey I'm not -- immediately -- like -- But it is so great to have you here I'm so proud review the work that you're doing his chair I don't know when you've got sleep in the last 72 upwards. But you you know."

" some of the meetings."

" The what some of his colleagues were -- droning on hate about it we'll get right into it because we know yet time is limited to in the midst of a mess it is unbelievable. -- Mae and Freddie Mac a big big piece of this followed by AIG and then not. The systemic precious. All around give us your take on Fannie Freddie. What went wrong and it is there really any a finger of blame two point. And any particular person or any particular."

" Anybody -- media with the -- in December by the Democrats protected them. The facts -- clear. The Republicans and you know weren't power in congress -- 1995. -- of 2006. They never -- to eight a bill to the president that either president to do that -- I purpose Mike Oxley sarbanes Oxley. I was the senior Democrat but he was just. And we did get a bill in the house but he blamed the Bush Administration. And debt. I think about open pit stop it my Buick Freddie Mac but America's so we've been to pull one they've played -- and housing true. They need to be the regulation should be tightened up. We currency crisis to do that veto it had a crisis in a right here. Why can't -- neutral or anybody else but here's the key point. When the Democrats took power in January of 2007 and I gave him that committee. 1 of the first things we did was to look at Fannie Mae Freddie Mac and in April. Of 2007. The committee I care. Pass the bill that the Bush Administration has for work with the -- straight at times in the Balkans and we gave them every regulatory power they escort. Now that's been -- but that was in May it included. Some money from Fannie Mae Freddie Mac over their objection. Report about because front and it's ironic that some of the conservative that you guys have been two -- payment Freddie Mac. Sided with those who don't want to take some of their money and political or I think what then happened was the Senate will. -- movies so he. In January 2008. With speaker Pelosi permission. You know mr. speaker I'm."

" Hi -- hot hot patriots -- was so deferential to the high Iraqi 98."

" Outside and anyway. CN. I -- secretary Paulson Arctic club atletico we're going to do this statement respected. Why don't we take the Fannie Mae Freddie Mac regulatory reform reported net that a guy can do that I just don't think I get approval over euphoric. So then we had to wait til July but even with. The Senate will be slowly secure site we had this -- so is the rules and did this score correct twelve years of Republican appellate they didn't get the bill -- It's nice nineteen months to the Democrats we don't edit that and it gave them all the regulatory powers they asked what."

" So let me ask you this then."

" I mean I went to the public opinion made but it met with not so much every individual activity it was the sub prime crisis with the sub prime crisis blew up. Bank people up investment houses it's not if any made Freddie Mac -- at a problem. -- doesn't doing doing well you could say well there was some Florida but the basic problem is they that job was to buy up mortgage did. That'd been made by other people protect their market. Increasingly that mortgage market was fouled. Not bite that thing is to -- teammate Freddy Mac they've ever -- is more predicted by as did a lot of other institutions won't eat it every Studebaker depressed."

" Body would be a fair criticism of Fannie and Freddie as well as the others of name. That nobody was doing due diligence even routine scrutiny as to the quality -- crappy loans."

" Yup and that's exactly right now they're two point that is true. Part of the problem -- a large part goes down being spent in 1994. Again when the Democrats -- best and our. One of the the other Democrats on the committee I'm. Political banking site with -- active leader and -- I don't take credit for both the congress passed the bill. -- exactly called the homeowner's equity protect connect and it said that the Federal Reserve because it to bump -- it was only the bank. Our our local bank and credit union if they would really want to make mortgages. We wouldn't have this problem we got it to all the mortgage finance companies aren't by the people that weren't regulated -- state bank commissioner the FDI CBOT seek. We -- stability city we spent. Police who regulates sub prime mortgages issued by people will not itself regulated outside a bank. Greenspan said this is very clear. No that required me to intrude in the market the market knows more than I do much smarter than the market and it won't do it so that would be terrible regulatory failure. Then what happened was. People ward did not coping abilities but Fannie and Freddie were no worse and nobody here. Then all these others and that that you're correct and they didn't do due diligence well what they get fooled by -- I quantitative models like if say one other thing is the -- to the public sound. Simple put it that terrible consequences. Twenty years ago when more most loans according to a remote video were made by entity and you paid them back. You that -- in the bank if you break the bank back and maintain security basic. And we can you -- muddy and they -- still the right to contact that. All over the economy and what happened was people -- because if I'm going to wait for you to pay me back I'm going to be more carefully -- That have I make my money right away by selling -- right -- payback. And other people then bought loans that they hadn't made where they didn't know what was going on and that's spread throughout the system."

" A congressman Barney frank is our guest at 714 and WR KOI am so mr. -- and I've got to ask you about this weekend. We're hearing that. The big. And stopping point between the Republicans and Democrats is that a UN and other Democrats that are insisting that part of the 700 billion dollar bail -- and please tell me if I've got the number right I'm. Really should I take great really should include executive. Hey can -- restrictions."

" Depict virtual we want to make sure that some ability. Money -- To reduce foreclosures and I don't some people -- well CD people -- mistakenly. The -- more houses that -- edit some cases people who took out all the groups who want criminal defendant guilty of trying to. Improve their family but they didn't unlikely but it it all over are or are helpful mortgage book -- ghost owner occupied. Private -- To put an upbeat speculated that helping. You -- original. So. The point is that when their support cloture you accompanying note -- very explicit about that the book called unity -- home in the neighborhood says that any. And so we're trying to reduce foreclosures so one thing we said it looked. You don't you're asking for the 700 billion. To buy up bad that -- Khaleda sellable cost 700 billion because I could we not sure that a lot of money but it won't be seven I didn't resell them. But we're saying you'll expect -- these things. What you police when you -- the mortgage papers. Why strategically. So that we the federal government would then be be older and we can write down the mortgage principal and reduced or -- which. In -- mayor including assisted -- me and I hear god thank you know -- an idea from. But become greater and over in my he might didn't give me it just makes cities of Rico well into one. Police about -- do we want to say. When you we want to buy up this paper and then reduce -- coated secondly we have said that. If a company benefits for mark buying care connect company. Well buying up some of their assets that may have to accept restrictions on -- taken and I am I like sick people and I think -- musical but he acts as if this is the pillaging of the it's supposed to be a good thing that. And we are insisting. That -- by the -- one of the leading conservative Republican Jeff -- Or not there yet get stuck -- yesterday that police these people -- don't give it. That we it would just that some restricted a minute -- got these CEOs who made some bad decision maybe what we -- terrible. Appreciate it up but they made bad decisions to the point where. We now believe that the government has to temporarily by the deficits and hold them for awhile. It is said the economy. As they are -- to what this is very important must deal with but. Given in to meet for a couple of million out of my tens of millions of won't go along. And I just say one other rationale and I think it we are cumbersome but he did what we believe it indicates. That as a psychological. Depression in the market now so that there are -- that's out there that -- Fish -- less than it will ultimately be worth. It would be at a time ago a bargain I think except nobody getting ready to do that that's where the federal government has -- and we have the ability. What the federal Gregory the don't compartment I think and then hold these -- for a couple of years and then sell them edit paste. It doesn't depressive so. It's -- bit of good kids we could break even on this and an aunt and media outside -- that much but Tibetans have a good billion bailout sort of -- we think the economy going again."

" Body to the what you had made earlier about insisting on some type of assistance for four to prevent foreclosures. At the urging of the may is Iran analyses Sharon common sense. In your understanding of what that does to destabilize the neighborhood. How do you envision a government agency. Having the political will power if talk Madonna Finneran for example of one of those couples benefit. And we continue to fall -- had we continue to go into."

" You get to -- it's very good question we take to think spiritual and we passed it in a bill that as in -- and we -- the private sector that would that we had to say. Don't I've talked Britain's. I look forward to -- Bank of America now to vote countrywide because I think they're going to be much more responsible. And -- going to come get me what -- are too worried. -- that the BankAmerica of the country whether it had been executive period took over country I thought I don't think -- throughout through the people that BankAmerica and Paducah and others I think they'll be responsible vehicle we don't. We will do that if you show us that you can repay in other words. What are built says it is. If you can't show that it we've reduced the principal. And get it below of of the mortgage -- The idea that we get to a 87%. I think -- our goal problem -- to evaluate your aware. If we do that as you can make we will then look at it's not automatic and you don't what you can can make new payment. We will then. Refine it you can then refine it ago and the -- cable -- if you can't make this new level of payment then then we will -- to no point to -- people secondly we say this. If that happens and three years later. You turn around and sell that house for more than we get reduce the principal to you have to give a portion of the profits at a federal."

" so there's a claw back for you guys Jack -- on the wet upfront."

" And it's only for a owner occupied by remittances."

" Barney frank -- our destiny put before I know we're going to have to let you go because you are detained do we castle and and we have to break and I exercise taking a pariah. The order congressman I don't. As she moving forward here I want you to give us you're your best inside. And it's about what's going to happen because they're Republicans are already up in arms and saying we need to get this done to Sweden Mundo and the Democrats are dragging their feet trying to put in well I debates about what what what's your column it."

" Yes I do very regretted what the dates that does this bill on Saturday morning and that step you know and he knew who both of the one of the great bargain the American people dead and those people's work for those of us who were registered office. And they don't get a lot of attention -- whether -- Great -- decision -- opposite of people call up. Tell about their problem is difficult up is that you know much about the feeling fine and bill you don't have a great time of the army. And took a step should be committees have been working according by the way. A former colleagues. You see vocal line -- releases. And doing great work and them. What's happening -- they he are working to build on we have said look. We're making progress I think it's important to show the market that we're making progress we've. We make -- database tenets of bill which would like to page it said of this decade italics that the by -- 700 billion dollars. And an end to -- now he had immunity from judicial review. There was no oversight we'll put -- about it safeguards on as. And we have made a lot of progress with them we are down a couple of these into I think we get it done by Friday senate -- and that's pretty quick it is a big issue. A and the other thing to do this we are determined that it would be irresponsible we didn't do that. We got into this because it was an appropriate regulation it's time said people who don't do don't it's two fold problem. Bad loans were made and then people put those that don't think I don't might limit securitize them et cetera et cetera. And gotten in trouble we will when we come back next year immediately began to adopt regulations. And -- to go look at that. The more regulated -- institute and work. The better they they what the banks are dividing that the investment banker at the bank to better regulated. And they -- is seen currency entity to be an idea and you won't go so well tightened security interrogated. They are having to pay off speculation in the yet -- credit default swap area. So we come back and yoga with the right kind of regulation and to make it less likely that this doesn't happen again."

" And it's you come back next year and do that when he is there any chance we've had a lot of criticism from the republic. Republicans back home here that the community reinvestment act was relieved that little -- that yeah."

" I think. Yes it -- dead -- the community reinvestment act expressed in 1977. These problems didn't occur until. 28 -- would it would it sub prime mortgages that was the problem and yet the other part of make. -- people don't realize that the committee member aspect only -- bank. It doesn't cover mortgage finance company it didn't cover Fannie Mae Freddie Mac it didn't cover. The yield new century these other. And if you looked at mortgages. That were originated by the bank. They didn't cause the problem because they were regulated if the bank. Technical and executed it took deposit funds in the separatist state speculation over the federal deposit insurance commission of the federal -- they lent money to people wait beyond what makes sense. They would have been called on the carpet by the now."

" By the regulate -- done right no question body quick question do you -- you democratic colleagues and I see this bill as an opportunity to insist upon. Extensions of unemployment benefits or run it under another version of economic stimulus."

" You guys have you know I took the legislative. Be -- not and it spilled its speaker Pelosi has told the administration. That is part of an overall package to get out of the go to to a -- we want a second stimulus which is -- to go to infrastructure money. An important and -- unemployment you know we're talking about this Ekuban. But unemployment now over 6%. And we aren't tracked -- dead beat them both over a million private sector jobs here. It's the public sector that you have at that -- so we began working with the mayor and we want to provide some help with. The Medicaid build an infrastructure unemployment compensation and always competing existence as a separate bill what we would hope as part of an agreement."

" Here it's not like it sounds as if you are going to be busy here congressman frank by frank has been our guest Marjorie -- but it Tom -- he -- for ignorance -- can't say enough about. The time is spent with those bunny love the picture on the front page of the globe you leave it."

" They're -- you're tying a tie is clean and I don't let these. Meet this anti -- record."

" Topic don't -- with my favorite picture -- Obama up to. A sliding home in 19791. Point spoke won't tortured."

" Ghazi playground actor Michael Resnick bodies spread Todd -- how much of a young homeless -- I -- writing edit it right. What's comedic right dropped the ball five. It is it is the great slide odd that we -- thing was this illness everything that -- and he and he can hit the ball for you -- I appreciate all like -- okay yeah."