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Barney admits helping his partner get a job at Fannie Mae in 1990s

Welcome Instapundit Readers!!

Back in the George W. Bush era, Barney Frank, either in his role as a senior member or Chairman of the House Financial Services Committee, was one of the Congress’s biggest cheerleaders for Fannie Mae, the Government Sponsored Enterprise (GSE) at the heart of the financial meltdown of 2008.  The Massachusetts Democrat repeatedly opposed Republican proposals for greater oversight of the GSEs, famously saying in 2003, “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. . . .

In 2008, we learned that Mr. Frank had a conflict of interest:

While Frank served on the House Banking Committee in the 1990s [as what is now the Financial Services was then called], 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.

I later wrote my Congressman asking Henry Waxman to refer this matter to the House Ethics Committee.  Today, we learn that Mr. Frank’s conflict of interest was far greater than we had initially reported.  In the Boston Herald, Howie Carr reports that in a new book, Reckless Endangerment, New York Times reporter Gretchen Morgenson reveals that Barney got his partner a job:

“Frank actually called up the company (Fannie Mae) and asked them to hire his companion, who had just gotten an MBA from the Amos Tuck School of Business (at Dartmouth). . . . Of course the company was happy to provide a job for his companion and rolled out the red carpet in a series of interviews with a variety of executives, and it ultimately did hire the man.”

Wonder how the media would react if a journalist reported that a Republican member of the House Armed Services Committee got her husband a job at the Pentagon.

Also in the Herald, Dave Wedge reports that Frank admitted that he helped his then-partner land a job a the GSE, also sharing with his readers some of Morgenson’s commentary on the matter:

In an interview Tuesday on WBUR’s “Fresh Air,” Morgensen said Frank “was very aggressive and really tough on those who were testifying in Congress about reining in Fannie Mae and Freddie Mac” during hearings after Moses was hired. She said Fannie Mae “rolled out the red carpet” for Moses as part of a strategy to curry favor with Frank and other members of the Financial Services Committee.

All those who believe in “marriage equality,” that is, in treating gay relationships the same as we treat heterosexual ones, should join me in demanding that this matter be referred to the House Ethics Committee and that Mr. Frank relinquish his role as Ranking Democrat on the Financial Services Committee until that investigation is complete.

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12 Comments

  1. All those who believe in “marriage equality,” that is, in treating gay relationships the same as we treat heterosexual ones, should join me in demanding that this matter be referred to the House Ethics Committee and that Mr. Frank relinquish his role as Ranking Democrat on the Financial Services Committee until that investigation is complete.

    No problem. Done in spirit. On a practical level, what do I do – write my Congress person?

    Comment by ILoveCapitalism — May 26, 2011 @ 4:29 pm - May 26, 2011

  2. ILC, that would be a good start. You can use my letter to Henry Waxman if you like updating as per the new information.

    Comment by B. Daniel Blatt — May 26, 2011 @ 4:32 pm - May 26, 2011

  3. “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. . . .“

    If only the liberals would want to “roll the dice” a bit more on the private sector instead of adding business crushing regulations.

    Comment by TGC — May 26, 2011 @ 5:26 pm - May 26, 2011

  4. TGC, great point!

    They always want to “roll the dice” in one direction… growing government. And (same thing) looting the prudent and the productive, for the sake of the imprudent / unproductive.

    Comment by ILoveCapitalism — May 26, 2011 @ 5:32 pm - May 26, 2011

  5. someone, I dont remember who, wrote the perfect headline “Frank helps lover get into Fannie”

    I lol’ed at least.

    Comment by American Elephant — May 27, 2011 @ 4:14 am - May 27, 2011

  6. It’s extraordinary how groupthink blinds the MSM.

    Yalie Camille Paglia nailed him years ago: “Frank is a classic, mushy Harvard liberal.” While I think it is unnecessarily cruel to make fun of his lisp (the radio “joke” is growing old) he has acted unethically…again, and must be held to account. This is beyond parody.

    Comment by Ben — May 27, 2011 @ 5:50 am - May 27, 2011

  7. Liberals, lefties like business, a lot. Why Fannie and Freddi were run like a business. Harold Rains pulled in 20 mill, plus. Roger Mud’s son, pulled in 10 mill. William Styron, ex Boston Fed chief, friend of Bwarny Fwank, and originator of the first ‘Red Line’ loaning survey( junkly done ) made over 10 mill. Chris Dodd got his friends of Countrywide loan. There’s the female lawyer( Amy Gorelick? ), DNC hack, she pulled in 10 mill.

    So, other than the taxpayer, or anyone who bought into the government distorted, mal-invested warped, twisted, housing bubble things are great!

    As technocrat dweeb, Michael Dukakis always said, ‘Private/Public partnership’!

    Lastly, to be fair, George Bush’s ‘Ownership Society’.

    Well, at least that’s over with. Now all you perpetual debt slaves, get back to paying taxes so the banks can be bailed out.

    Comment by Paul — May 27, 2011 @ 7:48 am - May 27, 2011

  8. Oh, by the way. The last time Bwarny Fwank had a job in the Dreaded Private Sector( DPS ) was over 40 years ago in the Eisenhower administration as, fittingly, a gas pumper.

    Comment by Paul — May 27, 2011 @ 7:53 am - May 27, 2011

  9. I would not be worried about being “cruel” to Barney. He has the reputation of being the nastiest pol in D.C.

    Comment by Conor — May 27, 2011 @ 8:19 am - May 27, 2011

  10. [...] Gay Patriot (via Instapundit) takes up the issue of gay marriage in this context, but (unfortunately, in my [...]

    Pingback by How Many Spouses Has Barney Frank Had? | POWIP — May 27, 2011 @ 8:28 am - May 27, 2011

  11. i’m not defending frank but i am not getting the logic behind saying that, since he was not allowed to marry and is NOT married, we should therefore treat his relationship as if he WERE married…in the name of equality ?!?? so, gay citizens do not get the benefits of legal marriage, but they get all the detriments anyway?

    Comment by el polacko — May 27, 2011 @ 11:16 pm - May 27, 2011

  12. el polacko, good questions. My point it holding our relationships to the same standards to which we hold straight ones — to show that we understand the responsibilities which inhere in that bond.

    Comment by B. Daniel Blatt — May 28, 2011 @ 1:40 am - May 28, 2011

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