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Barney Frank accepts campaign donations from bailed out banks

October 22, 2010

Barney Frank

 Barney Frank–with his denial that Freddie Mac and Fannie Mae were in financial jeopardy–may be more responsible than anyone else for the mortgage collapse that led to the current recession than any other single person, no matter how much he tries to lay the blame at the feet of the Bush administration.

  In 2003, when President Bush tried to warn the public that both Fannie Mae and Freddie Mac were in trouble it was none other than Barney Frank who claimed that the Bush administration was “exaggerating the threat of safety and soundness” of these entities while claiming that Fannie Mae and Freddie Mac should do more to help people that could not afford mortgages get those mortgages anyway.

   In essence he claimed the Bush administration was engaging in fear mongering, while at the same time urging Freddie Mae and Freddie Mac not only to continue their lending policies but to expand them as well. He went on to say that he did not see any impending crisis and called Freddie Mac and Fannie Mae “financially sound,” before stating that even if something did happen to these government entities the federal government would never bail them out.

  Here is a video that shows how involved in the mortgage meltdown Barney Frank was:

  Reading some old posts made by the Northpoint Mortgage Company, our memory is reminded that president Bush tried not only to warn the Congress on the impending mortgage meltdown, but also tried to pass legislation to avoid the meltdown. This legislation failed as every single Democrat voted against it; the shortsightedness of Barney Frank–and the rest of the Democrats in the Congress looking to stifle the Bush administration’s agenda–is directly responsible for the current economic crisis. Now the Democrats are trying to blame the policies of the Bush administration for the economic crisis we are now in by claiming that he did nothing to avert the crisis, when it was the Democrats who opposed President Bush all along.

  Contrary to Barney Frank’s claim that the government would never bail out these entities, that is exactly what happened and before his re-election campaign got into full swing Barney Frank promised that he would never accept campaign donations from any institute that received any federal bailout money. This would be the right thing to do as it certainly seems as if accepting money from a company that the federal government bailed out would be a conflict of interest.

  However a funny thing happened on the way to Barney Frank’s re-election–enter  Sean Bielat.  Sean Bielat is in the midst of giving Barney Frank–who has never faced a tough re-election bid–a strong run for his money. So much so that Barney Frank recently was forced to lend his own campaign $200,000, and now we are learning that Barney Frank has reneged on his promise not to accept money from bailed out firms.

  According to his latest financial disclosure, Barney Frank has accepted over $40,000 from firms that received federal bailout money. Here is a list of donors that received federal bailout money that have donated to Barney frank’s re-election campaign:

Just yesterday, Frank made new campaign finance disclosures showing he received $17,000 from top executives of Bank of America — including $2,000 from CEO Brian Moynihan. B of A received $45 billion in bailout money. In all, Frank has hauled in at least $27,000 since 2009 from bank execs — and $13,000 from PACs — connected to banks that received TARP funding, including:

• $5,000 earlier this month from the Bank of America Corp. Federal PAC;

• $10,000 in August and September from the Bipartisan PAC/Bank of New York Mellon Corp.; Mellon received $3 billion from TARP;

• $2,000 in June 2009 from the Financial Services Roundtable PAC, which counts TARP recipients B of A, JP Morgan Chase and Wells Fargo among its members; and

• $1,000 in March from U.S. Bancorp PAC; the Minnesota-based bank received more than $6 billion in TARP funds.

  The National Republican Congressional Committee was quick to jump on Barney Frank’s duplicity:

Now that he’s in the political fight of his life, Barney Frank tossed aside his phony pledge and lined his pockets with cash from his closest allies — Wall Street executives,” said National Republican Congressional Committee spokesman Tory Mazzola. “He made a promise to voters, but obviously he cares more about saving his career as a politician than with keeping his word”

    And they are exactly right: Barney Frank lined the pockets of these institutions with federal money at the taxpayers expense and now these companies are repaying the debt by lining Barney Frank’s campaign coffers. We are supposed to believe there is no tit for tat or no quid pro quo aspect to these campaign donations? Naturally these institutions are going to donate money to the very people that enabled these companies to stay in business at the expense of Main Street America.

  Barney Frank’s excuse? He has moved the goalposts by claiming that while he has accepted money from some of the bailed out institutes, he has not accepted campaign donations from the TOP TEN companies to receive federal bailout money, although he left the door open to accept money from these companies as well once they pay back the taxpayer money they were given. Even if these companies do pay back the federal bailout money before Barney Frank accepts their money it is irrelevant–the fact still remains that they were given taxpayer dollars and now they are repaying that debt by donating to the people that allowed them to take taxpayer dollars in the first place.

  Barney Frank is getting desperate and while it still looks as though he will hang on to win re-election he is running scared from the surging Sean Bielat and because of this he is now taking campaign donations from some of the very companies that he and his Democrat cronies bailed out. It has been said that TARP and the stimulus bill were nothing more than slush funds to Democrat special interest groups and when you see the federal bailout money being returned in the form of campaign donations to the very Democrats responsible for the mortgage meltdown you have to realize that there is a little payback in the works here.

  Barney Frank is part of the problem in Washington,  Sean Bielat is part of the solution.

10 Comments leave one →
  1. October 22, 2010 11:01 pm

    This guy is a real piece of work. The biggest gift we can hope for come election night next to taking the Senate and House back is for this fool to lose. Nice post Steve.


    • October 23, 2010 10:57 am

      I agree! The polls up here do show him winning, but this is athe toughest fight he has faced in his carreer, hopefully there is time for Massachusetts voters to bring hime down!


  2. LD Jackson permalink
    October 23, 2010 6:05 am

    Not many people can get on my nerves like Nancy Pelosi, but Barney Frank has to rank right next to her. He is so duplicitous and conniving, it nearly makes me sick to my stomach. No offense to the people of Massachusetts, but I honestly can not understand how or why they continue sending Barney Frank to represent them in Washington.


    • October 23, 2010 10:59 am

      I don’t understand how they keep sending him back either, but the spotlight has never been on him like this before. Maybe enough people in Massachusetts are realizing now the damage this man has done and will finally vote against him.


  3. October 23, 2010 6:28 am

    There must be smart people in Massachusetts. How can they vote for this guy? On the other hand, they did insert Scott Brown, so Frank’s day may be coming.


    • October 23, 2010 11:01 am

      Maybe times are a’changing in Massachusetts, but can we expect to election day miracles from the state? We will know soon.


  4. Jim permalink
    November 8, 2011 12:19 pm

    I’d love to sit back and have a beer with you Steve. I have been ghostwriting a blog on behalf of my boss on the Occupy Wall Street movement, and all the factors that REALLY contributed to the meltdown when my research found your blog here. I, too, am a New Englander, born and raised in CT, my grandfather from Keene, NH, and grandmother from Virgennes, VT. Christ, we’ve got Senators and Congressmen who’ve held office longer than the Middle East despots who are getting their asses thrown out. Power corrupts, and absolute power corrupts absolutely.


    • November 8, 2011 9:24 pm

      I just happen to be enjoying an ice cold tasty beverage right now and am tipping toward you! Thanks for stopping by.



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