As members of George W. Bush’s administration and then-Fed Chairman Alan Greenspan warned the Financial Services Committee year in and year out about the grave “systemic risk” posed by the government-backed Fannie Mae and Freddie Mac, neither Frank nor Waters uttered a word of protest.
While Democrats planted in sinecure posts at Fannie and Freddie grew fat and rich at public expense, Frank and Waters were silent. As Fannie and Freddie securitized billions and billions of dollars in risky subprime mortgages and sold them to unsuspecting investors, Frank and Waters kept their lips zipped.
And whenever sensible lawmakers tried to curb the awful Community Reinvestment Act (CRA), a bizarre financial affirmative action scheme that forced banks to lend money to homeowners doomed to default, Frank and Waters called the reformers mean-spirited racists. They even demanded that banks step up their lending to unqualified borrowers.
Waters is a longtime ACORN loyalist who has come to the group’s rescue more than once. She even helped ACORN rescue the CRA when Newt Gingrich’s Republicans tried to repeal it in 1995, as I report in my book, Subversion Inc.
That year the thugs of ACORN stormed a House Financial Services subcommittee hearing. ACORN mobilized when the congressional panel began considering reforms to the CRA. Led by ACORN national president Maude Hurd, the activists disrupted a March 8, 1995, hearing by chanting, “CRA has got to stay!” and “Banks for greed, not for need!” When they tried to commandeer the microphone, five demonstrators, including Hurd, were arrested. Efforts to free them by ACORN allies Sen. Ted Kennedy (D-Mass.) and Rep. Joe Kennedy II (D-Mass.) failed. The U.S. Capitol Police let them go only when Waters showed up at the detention facility and threatened to stay put until the demonstrators were released.
Republicans gave up on reforming CRA, intimidated by the Left’s political theatrics.
After the original ACORN network began to splinter, Waters immediately expressed her support for the newly created ACORN front group, Alliance of Californians for Community Empowerment, when it made its public debut in January 2010.
If Waters ever chairs the House Financial Services Committee, she will use her power to help ACORN and similar radical groups undermine American capitalism.
And her behavior will be even more outrageous.
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