Barney Frank (D - MA) is the chairman of the House Financial Services Committee, which means he plays quite a role in analyzing the meltdown of 2008. Yesterday, he led the interrogation of the bank CEO's. Today, Caroline Baum's Bloomberg column hypothesized what would transpire if the situation were reversed:
Chairman Frank, on July 14, 2008, you made the following pronouncements about Fannie Mae and Freddie Mac, the two huge government-sponsored enterprises that are the key players in mortgage finance:
“Fannie and Freddie are fundamentally sound.”
“They are not in danger of going under.”
“Looking at the financials, they’re solid.”