Saturday, October 04, 2008

Barney Frank had a "friend" in the mortgage business

Aside from campaign contributions from the crooks running Fannie Mae and Freddie Mac, Rep. Barney Frank had another more intimate connection - his main gay squeeze was a Fannie Mae executive. Or as Ace observes: Barney has a Fannie buddy.

Unqualified home buyers were not the only ones who benefitted from
Massachusetts Rep. Barney Frank’s efforts to deregulate Fannie Mae throughout
the 1990s.

So did Frank’s partner, a Fannie Mae executive at the forefront
of the agency’s push to relax lending restrictions.

Now that Fannie Mae is at the epicenter of a financial meltdown that
threatens the U.S. economy, some are raising new questions about Frank's
relationship with Herb Moses, who was Fannie’s assistant director for product
initiatives. Moses worked at the government-sponsored enterprise from 1991 to
1998, while Frank was on the House Banking Committee, which had jurisdiction
over Fannie.

Both Frank and Moses assured the Wall Street Journal in 1992 that they
took pains to avoid any conflicts of interest. Critics, however, remain

"It’s absolutely a conflict," said Dan Gainor, vice president of the
Business & Media Institute. "He was voting on Fannie Mae at a time when he
was involved with a Fannie Mae executive. How is that not germane?

It was sure nice of the taxpayers to lubricate ole Barney's relationship with his boy toy.