Former Housing CEOs: Poor People Did Not Cause The Current Financial Crisis
Dec 9th, 2008
Today, four former CEOs of Fannie Mae and Freddie Mac testified before the House Oversight Committee
on how their companies’ actions may have “contributed to the ongoing crisis.”
Blaming Fannie, Freddie, the Community Reinvestment Act (CRA), and low-income people is one of conservatives’ favorite talking points
. In September, Rep. Michele Bachmann (R-MN) touted an article criticizing the CRA for pushing “Fannie and Freddie to aggressively lend to minority communities.”
But as the Wonk Room’s Pat Garofalo points out, at the beginning of today’s hearing, Chairman Henry Waxman (D-CA) said that 400,000 documents amassed by the committee showed that the right-wing claim is nothing more than a conservative myth
. Later in the hearing, Rep. Edolphus Towns (D-NY) asked the four CEOs whether poor people caused the current financial crisis. All said “no”.