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President of BB&T “Goes Political…”
By Sherman Ragland | September 26, 2008
Today BB&T CEO John Allison issued the following statement:
“…A significant and immediate tax credit for financial institutions to purchase homes would be a more effective solution for the financial crisis than the proposed $700 billion federal bailout. The federal government should also buy homes, and not securities backed by mortgages, he wrote in a Sept. 23 letter to the U.S. Congress.
…This is a housing value crisis, and it does not make economic sense to purchase credit card loans, automobile loans, etc. The government should directly purchase housing assets, not real estate bonds…
…Overpaying will harm taxpayers, while underpaying will hurt real estate markets. He also believes allowing homeowners to use the bankruptcy to restructure their loans will “force losses on banks. The primary beneficiaries of the proposed rescue are Goldman Sachs Group Inc. and Morgan Stanley..
…The U.S. Treasury, he says, is “totally dominated by Wall Street investment bankers,” and “cannot be relied on to objectively assess all the implications of government policy on all financial intermediaries… it is inappropriate that the debate is largely being shaped by the financial institutions who made very poor decisions.”
Allison then goes on to pin the responsibility for the crisis on Freddie Mac and Fannie Mae.
THERE IS ONLY ONE PROBLEM – > IT IS A LIE AND ALLISON KNOWS IT!
Allison is among a growing group of Influential REPUBLICANS who are attempting to re-write History on this topic (in real time) and PIN the Blame for the financial MELTDOWN ON Fannie Mae and Freddie Mac in an attempt to SMEAR Both House Democrats and In particular Barack Obama.
How??
#1 – By Deflecting the blame from the REAL CULPRITS, the investment banking firms (Bear Sterns, Merrill Lynch, Lehman Brothers and UBS) who Dreamed Up and Then Pushed Exotic Mortgages down the throats of American Home Owners Using Their Conduits: Indy Mac, WAMU, Countrywide and other Mortgage (Broker) Originators dealing in the (now known to be HIGHLY TOXIC) world of Sub-prime loans, etc.
AND
#2 – A Bush Administration that Emphasized a 100% Home Ownership Policy through the US Department of Housing & Urban Development Despite the Objections of the Career People at HUD who for over Seven Years Warned About the Dangers of attempting to move the Needle past the historic home ownership levels in this country of 52%-54%. While at the same time had an SEC (Securities Exchange Commission) with oversight over Wall Street Firms who were not only creating these highly dangerous mortgages, but were instituting the SEC’s Program Pioneered in 2004 Called “SELF OVERSIGHT”
The TRUTH of the Matter is that Fannie Mae and Freddie Mac had little to do with the creation and development of the SUB-PRIME Type of Mortgages that are the Main Poison Infecting the Entire Mortgage Market.
WORSE: People like Allison KNOW THIS!
It is true that Fannie and Freddie have had their problems, but being “MARKET MAKERS” in Sub-Prime is NOT one of them.
So why would the President of BB&T KNOWINGLY Publish a LIE??
Because Blaming The NEED for a $700 Billion Bailout on FANNIE AND FREDDIE takes the focus off who is really to Blame:
a FORMER SENATOR NAMED…. Phil Graham who was the chief advocate of a Bill that sailed through Congress during the final days of the Clinton Administration when BOTH Houses of Congress were CONTROLLED by the REPUBLICANS and Graham was able to get through a piece of legislation called: The Graham-Leach-Bliley Act which DEREGULATED The Prior Separation Between WALL STREET and COMMERICAL BANKING In 1999, and is the primary reason why Wall Street Took on Riskier and Riskier Practices, which lead to the creation of things like Sub-prime loans.
Without The Graham-Leach-Bliley Act Wall Street could not have created SUB-PRIME LOANS and the other creative (TOXIC) loan products now clogging up the system.
The TRUTH IS it is The Graham-Leach-Bliley Act which forced Wall Street to create more and more creative loan products combined with the Bush Administrations’ Housing Policy and “hands-off” oversight of Wall Street. That Created This MESS, NOT FANNIE AND FREDDIE.
OBAMA HAS BEEN “SWIFT BOATED” BY What is now becoming the Republican SPIN on the ECONOMY and the GREAT LIE That Fannie and Freddie Brought On this Mess, and Allison, Pat Buchanan and other folks getting prime-time coverage KNOW IT!
The Question is: Does Barack Obama know What Just Hit Him, and Will he Hit Back?
Excuse me, but did anyone say: “KEATING FIVE….?”
P.S. IF YOU ARE STILL CONFUSED ABOUT ALL THIS – > DON’T BE: http://www.AfterTheMeltdown.com
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Tags: after the meltdown, bailout, barack obama, bbandt, John allison, john mccain, keating five, sherman ragland
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