In Paul Krugman’s recent article about the Consumer Financial Protection Bureau, he revisits the events surrounding the 2008 financial crisis, trying to exonerate Barney Frank et al from their involvement in the events leading up to the debacle.
History tells us that the Glass-Steagall act was repealed under Bill Clinton’s reign, and that on January 3, 2007, the Democrats took over control of both the House and the Senate. Barney Frank became the leader of the House Financial Services Committee and Christopher Dodd became the head of the Senate Banking Committee. This was 15 months before the meltdown.
Both of these people vigorously defended the practices of both Fannie Mae and Freddie Mac, the main purveyors of the toxic loans created as a result of the misguided attempts at subprime lending spearheaded by — you guessed it — Dodd and Frank, the same two characters who created the Dodd-Frank act we are now living with.
Krugman maintains that as the GOP “ruled the House with an iron fist” during this period, it was impossible for Barney Frank to have anything to do with the meltdown. My calendar, and verifiable events in history, are at odds with this assertion.