I would be very careful, believing anything Kanjorski says. He is one of the most corrupt members of Congress. First, there is this:
Then there is this:
Rep. Paul Kanjorski is the second-ranking Democratic member of the House Financial Services Committee, the number two man to Committee Chair
Barney Frank. Way back in 2001, Kanjorski was the ranking Democratic member of that committee's sub-committee on Capital Markets, Insurance, and
Government Sponsored Enterprises. Today he is the chair of that sub-committee. If there's anybody on the Democratic side of the aisle who should
bear some responsibility for where we are today, somebody who has been in a position and had the power to do something BEFORE the crisis, it's Paul
Kanjorski. Yesterday, by the way, he voted FOR the bail-out, to be expected since he was one of the Democratic negotiators for the bill. Now turn
the clock back to 2001, 7 years ago, a couple of months before 9/11. Rep. Richard Baker (R-LA) was the chair of the sub-committee that Kanjorski now
chairs. That sub-committee is responsible for the oversight of Fannie Mae and Freddie Mac. Rep. Baker was holding hearings regularly to examine the
risks to the entire financial system posed by those creatures of Congress. In 2003 (as I noted in my earlier post), Baker warned of the perils of
mortgage-backed securities (one of those phrases we all learned too much about this week). Baker said: I have concerns that if appropriate
resources aren't allocated for internal risk management, the consequences will be far more severe than just a real estate slowdown. The losses would
fall quickly through the capital these companies have and down to shareholders and taxpayers. These companies have some of the lowest capital margins
of any financial institution in the nation, yet, at the same time, they are two of the largest. The concern is that if something doesn't work out the
way they predict, the American taxpayer could be called on to pay off the debt in some sort of bailout. Baker was saying the same things in 2001.
What did Kanjorski have to say back then? In an opening statement at a hearing on July 11, 2001, he said: Our second topic concerns H.R. 1409,
the Secondary Mortgage Market Enterprises Regulatory Improvement Act. This bill would dramatically restructure the current regulatory system for
Fannie Mae and Freddie Mac. In my opinion, it also represents a solution in search of a problem. Nearly a decade ago, Congress created a rational,
reasonable, and responsive system for supervising GSE activities, and that system with two regulators is operating increasingly effectively. H.R. 1409
would unfortunately interrupt this continual progress. In a parliamentary system, Kanjorski would have been forced to resign after Baker's hearings
exposed the risky behavior of Franklin Raines, Jim Johnson, and others at Fannie Mae and Freddie Mac. Of course, he did not, and his bad judgment in
2001 was rewarded with the chairmanship of that subcommittee when the Democrats took power in 2006.
That is only the tip of the iceberg. Kanjorski has been involved in more scandals than you can shake a fist at.
I do not believe it is unreasonable to assume that this is an attempt to cover up his own complicity in at least failing to act, after finding out
about the problems with Fannie Mae and Freddie Mac in 2001, and not doing anything about them.
Furthermore, ask yourself this question. Since ALL money market OR money market mutual withdrawals OR transfers are recorded, every single penny of
the $550 billion has left an audit trail, which includes exactly WHO made the withdrawals or transfers, and WHERE the money was being transferred to,
WHY has a simple investigation not determined the "who, what and where" of the transfers?
Something big is being covered up, beyond a simple "electronic run on the banks".