Posted by Jason Cabel Roe at 12:00 am on Oct 22, 2005 Comments Off on Republican Jonestown
Months ago, the House
Financial Services Committee reported a bill to reform Government
Sponsored Enterprises (GSE’s), specifically FannieMae and
FreddieMac, which specialize in providing affordable
housing.
Reporting
errors in these publicly traded GSE’s in the millions and billions
raised the threat of another Enron and Congress responded with
reforms to create an independent regulator.
The Republican
chairman, Mike Oxley of Ohio, and the ranking member, Barney Frank
of Massachusetts , agreed on a provision that mandates that Fannie
and Freddie give 5% of their after tax profits to affordable
housing advocates such as ACORN. The total figure is
somewhere in the neighborhood of $1 billion – that’s with a B,
billion.
The problem
here in addition to the obviously offensive idea of forcing a
publicly traded company, or any company for that matter, to give
their after tax profits to anyone is that ACORN engages in
political… Read More