McCain Warned Senate About Economic Downturn Two Years Ago: Fannie Mae and Freddie Mac

McCain claims he has called for more oversight of lending institutions Fannie Mae and Freddie Mac for two years. On the Senate floor, and thus a part of the public record, he cited a federal report, saying that "Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets." He also noted a $3.8 million fine Freddie Mac had recently paid to the Federal Elections Commission over problems with disclosure of its political lobbying. He added: "If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole." McCain correctly and accurately identified the economic malady of today and warned about it some time ago.