Renewed scrutiny of the two institutions would remind the public that senior Democrats were in bed, sometimes literally, with Fannie and Freddie. House Financial Services Chairman Barney Frank of Massachusetts spent a number of years blocking various attempts to regulate government-sponsored enterprises, famously saying that that he did not see any "safety and soundness" problems worthy of note. There was good reason for Mr. Frank to look the other way, given his history of close association with Herb Moses, Fannie's assistant director for product initiatives from 1991 to 1998.
* Democrats were friends with financial benefits from Fannie and Freddie. Franklin Raines, a former Carter- and Clinton-administration official, pocketed $90 million as Fannie Mae's CEO - a figure bolstered by the agency's overstated earnings.
* Former Clinton appointee Jamie Gorelick was paid $26 million as Fannie's vice chairman
* Democratic honcho Jim Johnson, who led Sen. John Kerry's vice presidential search committee and temporarily led Mr. Obama's veep search, enjoyed $21 million.
* Kent Conrad of North Dakota and Senate Banking Chairman Christopher Dodd of Connecticut. Fannie Mae was the biggest buyer of the outrageously risky mortgages that proved to be Countrywide's undoing.
* Barack Obama was the second-largest recipient of contributions from Fannie and Freddie sources during his brief Senate tenure.
* Given below-market loans directly by Countrywide Financial CEO Angelo Mozilo were Mr. Raines, Senate Budget Committee Chairman Kent Conrad of North Dakota and Senate Banking Chairman Christopher Dodd of Connecticut.
Also on Frank, just because I like it,
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