[From article]
In a just-released book, former FCIC member Peter Wallison says that a Democratic Congress worked with the commission's Democratic chairman to whitewash the government's central role in the mortgage debacle. The conspiracy helped protect some of the Democrats' biggest stars from scrutiny and accountability while helping justify the biggest government takeover of the financial sector since the New Deal.
Wallison's sobering, trenchantly written "Hidden in Plain Sight: What Really Caused the World's Worst Financial Crisis and Why It Could Happen Again" reveals that the Democrat-led panel buried key data proving that the U.S. Department of Housing and Urban Development and other federal agencies pushed the housing market over the subprime cliff. The final FCIC report put the blame squarely on Wall Street.
In 2009, then-House Speaker Nancy Pelosi appointed her California pal Phil Angelides, a long-time Democrat operative, to lead the commission. The fix seemed to be in, and Wallison's account of the inner workings of the 10-member body confirms it.
[. . .]
"The FCIC majority misused its mandate for political purposes," Wallison writes, adding that the panel made sure its findings supported Democrat demands for a "new New Deal" that would put even more of the banking industry under federal control.
Democrats passed the Dodd-Frank Act in July 2010, six months before the FCIC released its report — "a clear demonstration that the Democratic Congress knew well in advance exactly what this well-controlled commission would say." After Dodd-Frank shockingly left Fannie and Freddie untouched, the FCIC excused the glaring oversight by exonerating the toxic twins and their affordable-housing masters at HUD.
As a result, Fannie and Freddie, now under full federal control, are back making low down payment loans to low-income borrowers, and the Dodd-Frank-mandated Consumer Financial Protection Bureau is forcing banks to ignore credit risks in the name of affordable housing.
A corrupt investigation led to corrupt reforms.
http://news.investors.com/ibd-editorials/012215-735877-whistleblower-reveals-pelosi-covered-up-government-role-in-housing-crisis.htm?p=full
Whistleblower: Pelosi Covered Up Role In Crisis
06:33 PM ET
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