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Barney’s Frank’s Conflict of Interest in Mortgage Mess

Five years ago, Barney Frank contended that “These two entities — Fannie Mae and Freddie Mac,” at the center of the mortgage mess and financial crisis, “are not facing any kind of financial crisis.”  He called them “fundamentally sound financially and withstand some of the disaster scenarios.

Indeed, he wanted to take a little risk with these government-sponsored enterprises:

I do think I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing. .

Now, it looks like Barney Frank’s risk is costing American taxpayers billions of dollars.

And just as the mainstream media has taken little note of Barney Frank’s past defenses of the soundness of Fannie Mae and Freddie Mac and his efforts to block Republican efforts to rein in the mortgage giants, they have also paid little heed to the Massachusetts Democrat’s past conflict of interest in dealing with Fannie Mae.

While Frank served on the House Banking Committee in the 1990s, his partner, Herb Moses, worked at Fannie Mae as assistant director of product initiatives from 1991 to 1998. The two lived together at that time, breaking up in 1998, “a few months after Moses ended his seven-year tenure at Fannie Mae.

While Frank and Moses had “assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest,” others disagree. Dan Gainor, vice president of the Business & Media Institute said:

It’s absolutely a conflict. . . . He was voting on Fannie Mae at a time when he was involved with a Fannie Mae executive. How is that not germane? . . . If this had been his ex-wife and he was Republican, I would bet every penny I have – or at least what’s not in the stock market – that this would be considered germane. . . . But everybody wants to avoid it because he’s gay. It’s the quintessential double standard.

If we want our relationships treated as traditional marriage, then we must hold them to the same standards.  If a straight Congressman would have stepped down from a committee because it regulated the industry where his wife worked, so too should a gay Congressman step down when his committee regulates an industry where his partner works.

Thus, Frank should have stepped down from the Banking Committee in the 1990s. Not only would he have demonstrated integrity as a legislator, but he would also have shown his commitment to treating gay relationships the same as traditional marriage.

Instead, he wanted to have his cake and eat it too. And he still refuses to take any responsibility for the current crisis. And yet another reason why he should resign his position as Chairman of the House Financial Services Committee.

ADDENDUM:  While I do think Barney Frank holds a good share of responsbility for this mess, I don’t know if I’d go as far as Mark Steyn who, on linking the article exposing this conflict, writes, “It turns out the entire planetary meltdown is due to Congressman Frank’s sex life.

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36 Comments

  1. If Frank were a Rupublican then the odds are great that he would in fact step down from his position. To expect people like Barney or Charles Rangle to see the utter hypocrisy of their continuing to hold onto positions of power while under an ethically challenged cloud requires suspension of belief in common decency. And to think the media will shed any light on this is tantamount to declaring faith that the tooth fairy will leave a Susan B. Anthony dollar for the next tooth lost. But then perhaps that is one fairy tale Barney does believe in.

    Comment by Not Always Right — October 4, 2008 @ 7:10 pm - October 4, 2008

  2. Barney Frank is a disgrace.

    I read a “gay” blog the other day praising Frank for representing “us” so well during this whole mess and being at the forefront of leadership.

    Yeah, thanks a lot Barney. You really did us gay folks proud.

    I want to throw a shoe at his slovenly, messed up hair, mashed potato mouth face every time I see it on TV.

    Comment by Jamie — October 4, 2008 @ 8:09 pm - October 4, 2008

  3. it’s a real mess alright. lot’s of blame to go around, including those hedge fund types who put the bubble in oil and reits. capitalism shines.

    Comment by michael — October 4, 2008 @ 10:21 pm - October 4, 2008

  4. Michael,

    i hear Barney is looking for a gullible love interest…..you seem perfect for him.

    jeb

    Comment by jebntex — October 4, 2008 @ 10:41 pm - October 4, 2008

  5. So, if the result of the Democrat experiment in socialized mortgages is a trillion dollar taxpayer bailout, any guesses what the future of socialized health care will be?

    Comment by V the K — October 4, 2008 @ 10:46 pm - October 4, 2008

  6. sf. and if you think for one moment that the chinese haven’t had W on the phone more than once of late with “gentle warnings” about holding an half a trillion in US debt and another one and an half in exchange reserves going south, then you must suffer from southern fried brain.

    Comment by michael — October 4, 2008 @ 10:49 pm - October 4, 2008

  7. taken from the VTK playbook: jeb, go play in the cement pond.

    Comment by michael — October 4, 2008 @ 10:52 pm - October 4, 2008

  8. I have a playbook, mikey has a coloring book.

    Comment by V the K — October 4, 2008 @ 11:08 pm - October 4, 2008

  9. m,

    i worked hard and actually have a cement pond right next to the still.

    i can also read (finished 6th grade) and realize the topic is Barney Frank’s participation in the Fannie Mae situation. I agree with the author of the original article….Barney should at the very least admit he was distracted and gave the appearance of inappropriate behavior by working on a committee that could have and probably influenced decisions that were in the best interest of his then lover and Fannie Mae exec.

    Barney was given a pass by the MSM because he is gay.

    And if a conservative had been in that same position his career would be history.

    Now if you will excuse me its time to walk my huntin’ dog, Duke.

    Nite John Boy

    Comment by jebntex — October 4, 2008 @ 11:10 pm - October 4, 2008

  10. michael – still waiting for that list of socialist workers’ paradises you’re comparing us to.

    Comment by SoCalRobert — October 4, 2008 @ 11:12 pm - October 4, 2008

  11. oh i haven’t thought that narrowmindly since i was ten or so, robert.

    Comment by michael — October 4, 2008 @ 11:20 pm - October 4, 2008

  12. While we’re waiting for mikey’s list of socialist utopias, we can begin waiting for the Congressional hearings into Fannie and Freddie. It may be a while – sometime after the sun collapses into a cold, dark cinder.

    W (with McCain’s approval) has probably already put in the fix at Justice so there won’t be an inquiry… wouldn’t want any appearance of partisanship! Of course, maybe Barney didn’t know his other-half worked at Fannie Mae. After all, he didn’t know an escort service was being run from his apartment.

    If our congress-critters were required to adhere to the same ethics code as a warehouse worker at Boeing – half of them would retire.

    Comment by SoCalRobert — October 4, 2008 @ 11:21 pm - October 4, 2008

  13. can we all agree Michael has nothing of substance to offer.
    jeb

    Comment by jebntex — October 4, 2008 @ 11:26 pm - October 4, 2008

  14. The fact that have been no hearings into Fannie and Freddie is proof itself that Democrats are responsible for what happened.

    Comment by V the K — October 4, 2008 @ 11:26 pm - October 4, 2008

  15. I recommend everyone watch FNC tonight’s report “Saving Our Economy: What’s Next? It is on now but will repeat several times in the next few days.

    It is a primer on Fannie/Freddie activities going back to 2004. Point by point it shows how the Democrats voted along party lines to NOT increase oversight and reign in the administrators of Fannie and Freddie from buying risky sub-prime and other packaged loans.

    The Dems are still in denial that they had anything to do with the problems at Freddie and Fannie.

    So much for those who pay their bills and play by the rules.

    Jeb

    Comment by jebntex — October 4, 2008 @ 11:36 pm - October 4, 2008

  16. Denial isnt really the right word, it implies they don’t think they had anything to do with it. True, hey are denyING they had anything to do with it, but they know damn well they did. The word is LYING.

    Comment by American Elephant — October 5, 2008 @ 12:11 am - October 5, 2008

  17. This is just a taste of the massive corruption to come with Comrade Obama and a Democrat majority congress. Look at Obama’s history… every office he has ever held he has used to enrich the corrupt parasites around him. Look at his friends and advisers… Larry Walsh, Tony Rezko, Jim Johnson, Jamie Gorelick, Franklin Raines… the corruption of his administration is going to be like nothing in American history.

    Comment by V the K — October 5, 2008 @ 12:37 am - October 5, 2008

  18. maybe Barney didn’t know his other-half worked at Fannie Mae.

    I can see it now: “He’s not the red hanky I thought he was!”

    Comment by ThatGayConservative — October 5, 2008 @ 1:35 am - October 5, 2008

  19. P.S. No, I’m not that old.

    Comment by ThatGayConservative — October 5, 2008 @ 1:36 am - October 5, 2008

  20. Another example of a gay man throwing dignity out the door. What a buffoon.

    Comment by Scott Lassiter — October 5, 2008 @ 2:20 am - October 5, 2008

  21. I wonder if Obama can get elected and impeached in the same year?

    Comment by American Elephant — October 5, 2008 @ 3:55 am - October 5, 2008

  22. michael,

    I just called the Chinese and you are absolutely right! They told Bush they would hold shoot themselves in the foot if he didn’t do as they said. They told him his only out is to bankrupt the economy so that their sustaining market would dry up and they could back to the days of Mao.

    Wow! You really understand the global economy. Even my dead cat is impressed.

    Call B. Frank, Barney to you, and give him a shout out. Bush says to do it.

    Comment by heliotrope — October 5, 2008 @ 8:50 am - October 5, 2008

  23. Mark Steyn suggests we can call this affair: Broke Bank Mountain

    Comment by V the K — October 5, 2008 @ 9:37 am - October 5, 2008

  24. [...] Dan Blatt thinks there is a double standard at work and Barney Frank should have resigned from the House Banking Committee when his partner worked at Fannie Mae. [...]

    Pingback by Commentary » Blog Archive » Flotsam and Jetsam — October 5, 2008 @ 10:23 am - October 5, 2008

  25. Ran across your website from a link at Commentary. I’m a straight guy, but I believe that “what unites us is stronger than what divides us”, or at least I want to believe that. The uncritical attitude of the MSM regarding the Barney Frank fiasco is what unites us as conservatives, that’s for sure.

    Slightly OT, but I’ve always noticed that my liberal friends are much more likely to have issues with gays more than my conservative friends. Is that my imagination?

    Comment by JMOD46 — October 5, 2008 @ 12:47 pm - October 5, 2008

  26. Great article. Rep. Frank is just a preview of the Obama administration. Socialism will rein supreme.

    Love this website. Keep up the good work.

    As a side note, does anyone know of a gay conservative/republican dating website??? And, I apologize in advance for using this forum to ask about a dating website.

    Thanks to all.

    Comment by Jeff — October 5, 2008 @ 1:41 pm - October 5, 2008

  27. v,

    Cant wait for the graphic artist to get a hold of that title and produce the movie poster and trailer…..

    SNL would never go there……BUT THEY SHOULD!

    jeb

    Comment by jebntex — October 5, 2008 @ 1:47 pm - October 5, 2008

  28. [...] Barney’s Frank’s Conflict of Interest in Mortgage Mess [...]

    Pingback by GayPatriot » Frank Hypocrisy — October 5, 2008 @ 5:57 pm - October 5, 2008

  29. [...] Barney’s Frank’s Conflict of Interest in Mortgage Mess [...]

    Pingback by GayPatriot » Media Downgrading Gay Relationships by Ignoring Frank Conflict of Interest — October 5, 2008 @ 8:07 pm - October 5, 2008

  30. JMOD46,

    Unfortunately, no.

    Comment by The Livewire — October 6, 2008 @ 7:29 am - October 6, 2008

  31. Slightly OT, but I’ve always noticed that my liberal friends are much more likely to have issues with gays more than my conservative friends. Is that my imagination?

    Comment by JMOD46 — October 5, 2008 @ 12:47 pm – October 5, 2008

    ——————————————-

    It seems to me that when a Liberal/Leftist disagrees with someone, they go after that person in the most personal and vicious way possible.. that includes attacking their gayness or blacknes or vaginaness (ick), etc etc.

    Comment by Vince P — October 6, 2008 @ 12:10 pm - October 6, 2008

  32. Just as Eastwood said in Unforgiven, “Deserves ain’t got nothing to do with it.”

    Well, gay ain’t got nothing to do with it.

    Frank is a corrupt, stupid, venal, partisan hack who practically bankrupted this nation by bullying people into dealing with bad paper by calling everyone who opposed him racists and people who hate the poor.

    He shouldn’t be made to resign his position. He should be arrested and thrown in prison, where the choice of his sexuality will no longer be his own.

    That you can understand this goes a long way to putting the “patriot” ahead of the “gay.” Which is how it always should be. And I thank and commend you for it.

    Comment by Pete — October 9, 2008 @ 2:55 pm - October 9, 2008

  33. [...] of the House Financial Services Committee, for his responsibility for the mortgage meltdown (here, here, here, here and here), he at least acknowledged the need for regulation of the government-supported [...]

    Pingback by GayPatriot » Chris Dodd Fails to Disclose Dubious Dealings — October 21, 2008 @ 12:59 pm - October 21, 2008

  34. Herb Moses’ porn career still moving forward. He starred in a recently released video: Forty Plus Studs 3 as Muscle Mike. This brings his total video releases to about 5, including his

    Seems he can’t quite decide what he wants for his life. A nobody at the US Dept of Ag., a boy-toy conspirator of Barney Frank who made out like a bandit finanically, a flubbed pottery business, a third-rate loan salesman with Wells Fargo, part-time escort, and porn actor.

    And we wonder how we got into such a mess with the mortgage loan collapse and debacle.

    Comment by OCBUD — December 1, 2008 @ 1:42 pm - December 1, 2008

  35. [...] Why, I wonder, isn’t Barney as eager to regulate the pay of Fannie and Freddie executives?  Is it that he has a higher regard for government employees than he does for those in the private sector?  Or might there again be further conflicts of interest? [...]

    Pingback by GayPatriot » Does Barney Frank Want to Regulate Fannie & Freddie? — February 4, 2009 @ 11:53 am - February 4, 2009

  36. [...] prominent openly gay person in American politics today, is becoming an embarrassment.  He favored rolling the dice with Fannie Mae and Freddie Mac, obstructing efforts to reform these two government-sponsored [...]

    Pingback by GayPatriot » The Best Thing Barney Frank Could Do For Gay People . . . — February 7, 2009 @ 1:58 pm - February 7, 2009

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