December 17, 2008

USA TODAY:

In any crisis of confidence or failure of government, it’s a pretty good bet that members of Congress are involved. The credit crisis is no exception. Lawmakers from both parties not only ignored signs of trouble but also actively invited irresponsibility in the name of protecting key constituencies. On the Democratic side, members supported virtually any program that provided credit to low-income purchasers and inner cities, regardless of whether this lending was prudent. The banking committee chairmen — Sen. Chris Dodd, D-Conn., and Rep. Barney Frank, D-Mass. — defended federally chartered Fannie Mae and Freddie Mac from charges that they were taking on too much risk and prodded the companies to back riskier loans. On the Republican side, then-House Majority Leader Tom DeLay, R-Texas, and other members thwarted efforts to rein in predatory lending.

They don’t mention Dodd’s sweetheart mortgage deals from Countrywide, though. Read the whole thing.

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