I meant to begin with a comment by Ethan W and my response a few days ago:
Ethan W: Well Tim it would seem as if they have us ageist the ropes the only thing I have left to say is start bringing the wistle blower forward and start dumping the truth. It’s the only way we can remotely start gaining ground.
On the ropes in some respects yes Ethan but this has been a slugfest from day one. We have taken quite a few blows from our government thus far. I honestly believe that justice will prevail in the end, and we will emerge as the victors ultimately. But what is a victory at this point you see no one truly wins any war. For this is why we tried so hard to push for a path out where everybody would win. We spent countless hours and days trying to convince parties on all sides some very common sense resolutions.
Their actions now have placed us on a course where in the end it will be very hard to separate the “winners” from the “losers”.
When the dust settles, and this is over the damage will be severe on all sides.
Our government and country will pay a dear price when it is revealed to the world what they have attempted to do.
Millions of our most desperate citizens will freeze under bridges this winter and for many more to come because of this irrational failure.
Millions of Black and minority Americans will be shut out of Americas housing market if they succeed in turning this market over to the vultures of high finance. Millions of lower income Americans of all colors from the heartland to our cities will be shut out of the American dream as well.
Many investors will remain forever bitter and disillusioned towards their government regardless of the outcome now.
The animosity has built to such a level that what began as a spirited debate descended into vicious personal attacks.I understand that the anger and frustration can become unbearable and the desire for revenge almost impossible to suppress but this is not the way.
Our way has always been the truth, the truth has been and will be on our side to the end.
Democratic Senate leaders set the record straight:
SECTION 702 IN DIVISION O
Mr. BROWN. Madam President,
today I wish to discuss section 702 in division O of the Omnibus appropriations bill. It is a provision that would prohibit the Treasury Department from selling, transferring or otherwise disposing of the senior preferred shares of Fannie Mae and Freddie Mac for 2 years.
In 2008, Treasury Secretary Hank Paulson and Federal Housing Finance Agency Director James Lockhart placed Fannie Mae and Freddie Mac into conservatorship and created an agreement that gave the Treasury Department senior preferred shares in both entities. Since that time, the GSEs helped stabilize the housing market by ensuring that families had ac- cess to 30-year fixed-rate mortgages at reasonable rates and lenders had access to a functioning secondary market. While the government was initially forced to inject $188 billion into shoring up these two agencies, it has since collected $241 billion. Taxpayers have thus earned $53 billion during the conservatorship.
Mr. SCHUMER. Madam President, will the Senator yield for a question? I am concerned that someone could read the provision as limiting a future ad- ministration’s authority to end the conservatorship after the 2-year prohi- bition absent congressional action. Does the provision prohibit a future administration from taking any action after January 1, 2018, if it is in the best interest of the housing market, taxpayers or the broader economy?
Mr. BROWN. I will say to my colleague from New York that it does not. That is not the effect of the language. Any number of decisions could be made after that date, when a new Congress and a new President will be in place. Nor does this provision have any effect on the court cases and settlements cur- rently underway challenging the valid- ity of the third amendment. As the Senator from Tennessee said yesterday, ‘‘this legislation does not preju- dice’’ any of those cases.
Mr. REID. I associate myself with the comments of the Senator from Ohio, Mr. BROWN. If it turns out to be in the best interest of borrowers, the economy or to protect taxpayers, the next administration could elect to end the conservatorship on January 2, 2018. This is the view of the Treasury Department as well. I would like to submit a letter written to me on this issue that states that the provision binds the Treasury only until January 1, 2018, and has no effect after that.
The agreement for this language to be included in the omnibus was that the prohibition would sunset after 2 years and not create a perpetual con- servatorship. As then-Secretary Paulson described, conservatorship was meant to be a ‘‘time out’’ not an indefinite state of being.
Madam President, I ask unanimous consent that the Treasury letter be printed in the RECORD at the conclusion of the remarks by Senator BROWN.
Mr. BROWN. Madam President, I thank the Majority Leader. The FHFA and Treasury Department could have placed the GSEs into receivership if the intent was to liquidate them. The purpose of a conservatorship is to preserve and conserve the assets of the entities in conservatorship until they are in a safe and solvent condition as determined by their regulator.