CHUTZPH! /Crooksandliars.com

By Bill Rife, April 26 2009

Good news at last from a US campus! Approximately 140 American University students have signed an online petition requesting their administration recall its invitation to House Financial Services Chairman Barney Frank who is scheduled to deliver a commencement address at the university’s School of Public Affairs on May 9.

Student Sarah DeStafano has created a Facebook page “AU Students & Alumni Against Barney Frank @ Commencement ’09,’” which castigates Frank for his role in the financial meltdown and describes him as “excessively partisan and notoriously divisive during times when compromise and bipartisanship is needed the most.” Appearing Tuesday on Fox News with Niel Cavuto, Ms. DeStafano alluded to documents recently uncovered by Judicial Watch which state… “members of Congress for years were aware that Fannie Mae and Freddie Mac were playing fast and loose with accounting issues, risk assessment issues and executive compensation issues, even while liberals in Congress,” Frank leading the charge, “continued to block attempts to regulate Fannie and Freddie.”

But if you ask Barney Frank if he contributed to the financial crisis, and you expect a straight answer, better bring a lunch. The Massachusetts congressman’s ability to slip out of the crosshairs amazes colleagues and confounds critics. Deflecting culpability through discredited forensic tactics and creative combinations of denial, obfuscating and attacking the messenger is what Frank does well….and gets away with.

As chairman of House Financial Services Committee (HFSC) he is one person who should know what’s going on in the American economy. The congressman has an extensive history on the HFSC and was its ranking Democrat long before becoming its chairman in 2007. As law student Joel Pollak reflected following his April 6 confrontation with Frank at Harvard Law School, “This guy is in a position of responsibility and authority. This guy is making regulations. He’s responsible essentially for recreating and redesigning our financial system, and he’s not taking any responsibility for what happened at all.”

Before the bottom fell out, Frank had long assured an overly credulous electorate that the goal of affordable housing for every American was attainable and posed no threat to the economy. His cozy relationship with the scandalized Government-Services Enterprise (GSE) Fannie Mae is a matter of record. Fannie and sister GSE Freddie Mac own or back 70% of the home mortgages in the United States, including a mass of ill-conceived subprime loans. The resulting avalanche of subprime defaults triggered the downward spiral leading to the current recession. Big-hearted Barney had proudly maintained throughout, “When it comes to subprime, I’m willing to roll the dice.”

But whose dice are they? Last September, the New Hampshire Union Ledger wrote “For sixteen years reformers in congress have tried to impose oversight on Fannie Mae and Freddie Mac and prevent the government charted companies from putting the housing market and the whole economy at risk. All that time, Frank was involved in efforts to block those attempts and for the last eight years he was a leader of those efforts.”

In 2002, shortly before accounting “irregularities” were exposed at both GSEs, The Wall Street Journalreported the congressman affirming, “I do not regard Fannie Mae and Freddie Mac as problems….I do not think we’re in any kind of crisis.” Again, in 2003, “These two, Fannie and Freddie, are not facing any kind of financial crisis. The more people exaggerate these problems the more pressure there is on these companies, the less we will se in terms of affordable housing.”

JULY 14, 2008: It was Frank’s response to a question about the two GSEs which would ignite a firestorm. “I think this is a case where Fannie and Freddie are fundamentally sound,” he answered, “that they are not in danger of going under. They're not the best investments these days from the long-term standpoint going back. I think they are in good shape going forward.

They're in a housing market. I do think their prospects going forward are very solid. And in fact, we're going to do some things that are going to improve them.”

Appearing on “The O’Reilly Factor” October 2, 2008, those words were replayed for him and World War III began.

Some choice excerpts…..

BILL O'REILLY, HOST: "Personal story" segment tonight, the financial chaos in this country is largely the fault of the citizens who cannot pay their obligations, banks who lent money to unqualified people, and the federal government which failed to provide oversight. Both political parties are to blame as I've stated.

Now ‘The Factor’ has called on SEC Chairman Christopher Cox to resign, Senate Banking Committee Chairman Christopher Dodd to quit, and House Finance Chief Barney Frank to step down from his position. That's because for the past two years, Frank and his committee oversaw Fannie Mae and Freddie Mac — two government sponsored lending agencies which pretty much are bankrupt. Congressman Frank was asked about Freddie and Fannie on July 14, 2008:”

The Video clip of Frank’s answer (above) was played.

O’Reilly continued, “Obviously, that statement turned out not to be true. Joining us now from Washington is Congressman Frank. And we appreciate you coming in, being a standup guy, but shouldn't everybody in the country be angry with you right now?”

“No!” replied Frank hotly. “You've misrepresented this consistently. I became chairman of the committee on January 31st, 2007. Less than two months later,” he said, then took credit for a "tough'' regulatory bill for the Fannie Mae and Freddie Mac that passed the House in May. From 1995 to 2006, with a Republican-controlled Congress, he said, "we couldn't get that done. …..but the basic point is that the first time I had any real authority over this was January of 2007.”

Setting a date before which we are to assume he was powerless to do anything and after which he personally made good things happen is a familiar Frank refrain.

O’Reilly persevered, “All right, that's swell. But you still went out in July and said everything was great. And off that, a lot of people bought stock and lost everything they had.”

FRANK: Oh, no.
O'REILLY: And — yes, oh yes. Oh, yes.
FRANK: I said it wasn't a good investment. Please stop yelling.

What Frank actually said was, “They (Fannie & Freddie) are not a good investment these days from a long term standpoint going back. I think they are in good shape going forward…..I do think their prospects going forward are very solid.”” Frank cleverly left himself a small back door with the “these days” disclaimer. But his message was the exact opposite….. invest!

O’Reilly continued, “Don't give me any of that, we just heard the words. What are you…”
FRANK: That's wrong.
O'REILLY: You didn't say that? You want me to play it again for you?
FRANK: You didn't listen to it.
O'REILLY: No, I listened to every word you said. And I have the transcript right here.
FRANK: No, and I said it wasn't a good investment.
O'REILLY: Yes, you said going forward, we're going to be swell.
FRANK: No, I didn't say swell. Excuse me, Bill.

True, Frank did not use the word “swell,’” but did say “I think they are in good shape going forward” and “their prospects going forward are very solid,” two remarkably cheery statements.

Later….

FRANK: You think toughness is yelling and ranting and trying to bully. It's not going to work with me. The fact is in the very quote you played, I said it's not a good investment. I tried to get the regulations adopted.

Bullying, shouting down and blasting the opponent with multiple accusations to which they cannot possibly respond is actually Barney’s own rhetorical modus operandi. The exchange further deteriorated into a schoolyard shouting match, both parties wielding insults and calling names. "Come on, you coward, say the truth,'' O'Reilly said, accusing Frank of "B.S" and “crap.” Frank repeatedly accused O’Reilly of “distorting,” and attacked, "You start ranting, and the only way to respond is to almost talk as boorish as you,'' later adding, “You don't listen at all, or maybe you are listening or you're too dumb to understand. And your stupidity gets in the way of rational discussion.”

O’Reilly, to his credit, would not allow Frank to unilaterally steamroll his way through the interview, matching him blast for blast. To his discredit, he sank to an indelicate level of discourse as it became evident nothing close to an expression of guilt or responsibility would be forthcoming. Swinish manners but terrific TV. If you had a dog in this fight , the complete transcript may be worth reading.

Frank spoke at Harvard Law School on April 6 after which he took questions and had the following exchange with law student Joel Pollak:
POLLAK: My name is Joel Pollak, and I'm a student at the law school. In your account of how the subprime mortgage crisis came about, you mentioned the Reagan administration, the Bush administration, the Republicans in Congress, conservatives. But it happened on your watch. And I would just like to ask you...

FRANK: interrupting…When was my watch, sir?

POLLAK: When you became the chairman of the...

FRANK: Which was when?

POLLAK: It was in 2007. I'm still waiting -- I'm still waiting for a very simple answer to a question...

FRANK: And I'm waiting for you to tell me what you think I should have done. I didn't say (INAUDIBLE)

Huh? Pollak had not completed his question. Even if he had, the shopworn tactic of answering a question with a question here falls well short of Socratic Method standards.

POLLAK: No, you're a public representative. I'm a student. I'm asking you..

.
FRANK: Oh, which allows you to say things that you don't back up?

Cheap shot. Pollak was attempting to complete his question, he did not make a declarative statement.

POLLAK: I'm asking...

(LAUGHTER)

POLLAK: It does -- it does allow me to ask you a question. I'm waiting for you to explain...

FRANK:OK, I'll give you an answer.

POLLAK: ... how much, if any, responsibility do you think you (INAUDIBLE)

FRANK: Well, I will take this. First of all, you are a student. Students are entitled to full constitutional freedom of speech under the 1st Amendment. You've made an accusation that is wholly inaccurate.

Barney attacked the messenger for something he didn’t say. His cry of “accusation” set up a strawman whereby he could rail against a position Pollak didn’t hold.

POLLAK: I didn't accuse you of anything. I'm asking how much responsibility...

FRANK: Sure.

POLLAK: ... if any -- you can say none. That's fine.

FRANK: I think you're being disingenuous.

…a claim Frank, of all people, was and is poorly positioned to make.

I became chairman on January -- and this is the right-wing attack on liberals to try and stop regulation that you are repeating. On January 31st, I became the chairman. On March 28th, the committee passed a very tough Fannie/Freddie bill, which the Bush administration liked. Later that year in November, we passed a bill to restrict subprime lending. Because we did the subprime lending restrictions, Ben Bernanke, the chairman of the Federal Reserve, did what Alan Greenspan refused to do and said, OK, I'll do that.

So I do want to ask you, when you suggest that I should apologize for something or take responsibility, what is it you think I should have done that I didn't do?

None of that had anything to do with Pollak’s question.

POLLAK: Well, after spending the entire speech blaming conservatives -- I happen to think of myself as of as a conservative, and I rent and I think of myself as someone who cares about poor people -- I'm just interested in whether you think you have any responsibility...

FRANK:Well, I've answered the question. Sir, I think you're not being fully honest with us. You clearly are implying that I do. And I'm asking you -- I have given you my record...

SEC Chairman Christpher Cox admitted his voluntary supervision program contributed to the crisis. Senate Banking Committee Chairman Christopher Dodd, called a “lying weasel “by the previously supportive New Haven Register is in deep trouble. But Barney Frank blusters on admitting nothing and is given a pass by most of the mainstream media. He remains as elusive as the greased pig at a county fair.

And Joel Pollak is still waiting for a straight answer.