Bush Says He's Not To Blame For Financial Mess
I can't speak to 2001 or 2002, but I can speak to 2003 and later. In a September post, Republican Congress Talked About Financial Reform, But Did Nothing, I detail what the Republican-controlled Congress did not do in 2003-2004 and 2005-2006 legislative sessions. The lack of action came despite a public show of solidarity between the White House, the Senate and the House of Representatives in the fall of 2003.
The President -- and Republican party leaders -- gave only lip service to reform. That is, publicly they talked a good line, but back in the halls of Congress, they either sat on their hands or turned their attention to more "pressing" matters, like the costly and ill-founded invasion of Iraq.
Updated:
STATEMENT OF ADMINISTRATION POLICY
H.R. 1461 - Federal Housing Finance Reform Act of 2005
The Administration has long called for legislation to create a stronger, more effective regulatory regime to improve oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (”housing government-sponsored enterprises” or “housing GSEs”) and appreciates the considerable efforts of Chairman Oxley and Chairman Baker in crafting H.R. 1461. However, H.R. 1461 fails to include key elements that are essential to protect the safety and soundness of the housing finance system and the broader financial system at large. As a result, the Administration opposes the bill.
But are Fannie Mae and Freddie Mac the reason we're in the mess we are in today? Kimberly Amadeo says no:
[Fannie Mae and Freddie Mac] didn't cause the housing downturn, the preponderance of exotic loans, and the use of derivatives instead of stock sales to cover potential risk. Instead, they were an example, not a cause, of the mortgage crisis.