Barney was frank when he questioned Fannie & Freddie’s $4.5 billion Treasury credits;

Hours later, he meekly clarifies he has no objections to the subsidy.

“Et tu, Barney?” asks Paige

(Washington, D.C.) — Citizens Against Government Waste (CAGW) today marveled at the arm-twisting acumen of one of Washington’s premiere lobbies, home mortgage behemoths Fannie Mae and Freddie Mac.

After a speech this week, Rep. Barney Frank (D-Mass), the House Financial Services Committee’s ranking member, let fly with characteristic bluntness regarding the Government Sponsored Enterprises’ (GSEs) $4.5 billion combined lines of credit with the U.S. Treasury.  When asked whether he would consider revoking the lines of credit to the two Wall Street powerhouses, Frank frankly replied, “I would take a look at it.  I don’t think it [the line of credit] makes a lot of difference.”

Within hours, however, the usually pugnacious pol was falling over himself to backtrack.  In a written statement, Frank meekly clarified that,  “I apparently spoke imprecisely and gave an inaccurate impression of my views regarding federal policy governing Fannie Mae and Freddie Mac.”  To complete the pirouette, he stated that in fact, “I start from a position in favor of the existing arrangements with regard to both Fannie Mae and Freddie Mac.”       

“Barney Frank is nationally famous for his sharp tongue and penchant for blurting out uncomfortable truths,” CAGW Vice President Leslie Paige said.  “That the GSEs could get a leader of Frank’s stature to appear to reverse himself illustrates their tremendous influence over Congress.”

“Did Barney get the thumb screws treatment or what?” Paige continued.  “Fannie and Freddie, hugely profitable as they have been, wield resources and influence in the capital that would make most private corporations drool.  The moment a politician wavers from their political playbook, their lobbyists swarm like locusts.  Frank’s office on Monday probably looked like Normandy on D-Day.” 

“Nevertheless, despite his hasty retreat this week, Rep. Frank took an important step by saying aloud what so many think: that it is questionable whether Fannie and Freddie, hugely profitable as they are, should continue to be implicitly backed by Uncle Sam while able to duck full transparency requirements,” Paige concluded.  “If only Frank had had the chutzpah to stick to his guns.”

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.  For more information about our organization and issues see our website at www.cagw.org