Barney Frank’s Racist Legacy

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While the worst financial crisis in the United States since the Great Depression was burning through businesses, jobs and credit like a forest fire, decimating the economy and leaving uncertainty in its wake—Barney Frank was looking around for oil to toss on the flames.

On September 16, 2009, the United States House Committee on Financial Services met to discuss the Community Reinvestment Modernization Act of 2009. Underneath that progressive name was the formula to take the entire subprime mortgage crisis and multiply it across as many financial institutions as possible.

Presiding over those hearings was Barney Frank, the congressman who had done so much to bring about the crisis while suppressing the reforms that might have headed it off—and CRMA 2009 displayed the same grandiose level of irresponsibility that had taken down the economy and it was backed by the same poverty pimps who had caused the disaster.

The original Community Reinvestment Act had been passed in the name of racial justice and that was the slogan under which proponents hoped to ram through its lunatic grandchild, the CRMA. But no one had suffered as much from the effects of the CRA and was as endangered by the CRMA as the people whom it was supposed to help.

The subprime mortgage crisis was a trillion dollar Ponzi scheme built on the backs of taxpayers with minorities as its catspaws. Mortgages were issued to unqualified lenders by government mandate at terrible terms, which were then transformed into Mortgage Backed Securities and Collateral Debt Obligations.

The Clinton Administration had turned Fannie Mae and Freddie Mac into factories for low income mortgages, purchased as securities with government subsidies. The year before the bubble burst, subprime mortgages made up over a third of CDO’s and 60 percent of subprime mortgages were being issued to African-Americans.

Organizations like ACORN agitated for more government intervention in the mortgage market, supposedly to make home ownership more affordable, while actually serving the interests of the predatory left-wing lenders who were making the loans, like the Sandlers.

The Sandlers invested millions into ACORN and made billions from adjustable rate mortgages in a government backed wealth transfer that was a masterpiece of crony capitalism as left-wing billionaires scored big, while the taxpayers and minority homeowners were left holding the bag.

No one had more responsibility to address the situation and no one did more to prevent anyone from noticing what was about to happen than Barney Frank who kept the lies going, while the Sandlers kept wheeling and dealing. And even once the crisis had arrived, his only solution was to toss more money into the pile.

The entire Ponzi scheme had been run on the pretense of helping minority homeowners, with the result that the median African-American household lost half its net worth in five years.

The progressives had convinced African-Americans to put their money into home ownership, they had regulated and subsidized the banks to make it as easy and pain free as possible, and defrauded them twice over, winning their political support with easy mortgages that got them to sink most of their net worth into home ownership.

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  • StephenD

    Great article Mr. Greenfield! I haven't heard it put so succinct before. This should be made public knowledge. It points to the fact that those that profess to care for the "disenfranchised" of our society are the first to tear them apart for their own ends. In every blighted community you see State Representatives, Mayors, City Councilmen, School Superintendents, Teachers and Clergy all, that are from the community but not of it. They see the community as their personal piggy bank. Just look at the likes of Jesse Jackson and Al Sharpton. For the past 40+ years they have been the "Mouth Piece" for such folks and have grown rich. How? Where did they get their money? The neighborhoods are none the better for these "Advocates." It should make folks question each of these that say they are on your side.

    • Bubbah Gump

      You just gotta laugh at these rightwingers, projecting their own racism on minorities, such as the Jewish people, Muslims, blacks or whatever.. Seriously, grow up.

      • StephenD

        You say this in response to what I wrote? Refute my claims. Expose this "racism."  What "you gotta laugh at" is a nonsense response posted to make an unsubstantiated charge. I assume you've got B*lls Bubba, so go on then…roll.

      • fisherKing

        If John McCain recommended his wife to head Fannie Mae while writing laws promoting deregulation, what would you think?

        Even Bill Clinton said he was afraid Congressional Democrats would bear the fault for blocking the reforms he requested.

        Let's not forget Chris "Friend of Angelo" Dodd. And then they have the audacity to put their names on the ridiculous Dodd-Frank financial reform bill. What's next? The Hitler-Stalin human rights act?

        Don't forget these clowns only got elected by convincing the American public Iraq was a failure, the surge has not worked, and the steady parade of Who George Bush Killed Today in 2006. American liberals managed to dodge accountability everywhere for two blunders consisting of promoting an American military defeat and destroying the American economy for 5 years. Everywhere except the election box that is. Vote or die indeed.

      • James Mc Quillan

        The last gasp of a liberal who cannot come up with anything valid is the cry of "RACISM". That word, without any basis to back it up, has lost all of it's meaning due to continued overuse

      • Martel64

        Ya just gotta laugh at these LEFTwingers, j'accusing every White to the "right" of them, of racism,intolerance,separatism,segregation,refusing to hire employees of non-White races – especially Blacks – ,etc, while in reality, they not only don't hire Blacks in THEIR businesses, but live in neighborhoods or buildings that are no less than 99% White and Jewish, and, when they are exposed for their racial hypocrisy and double talk, cleverly spin every decades-old excuse for it, and get away with it. Seriously,grow up.

  • mrbean

    Both Barney Frank and John Maynard Keynes were more interested in bed boys than economics

  • jacob

    As sure as death and taxes, Mr. GREENFIELD article hits it right on…! ! !

    However, who is going to take action on this whistheblow ???
    The Justice Dept. with OBAMA's sidekick at the helm ???
    A Congress who let off tax cheat CHARLEY RANGEL with a slap on the wrist ??

    Just another preaching in the desert or plowing in the sea….

    And these are the people we sent to Congress to watch for our interests ???

    And now lets get ready for what OBAMA has up his sleeve for his reelection
    campaign and whose splip just started to show…..

    GIVE ME A BREAK…!!!!

    • James Mc Quillan

      All above is the prime reason that we must have term limits. It will not happen as those that we are saying must have term limits are the same ones that would have to put the wheels in motion.

      The only way to get them would be to vote every sitting politician in Washington out at the same time and that is impossible.

  • Sound&Fury

    Just as in war, the winners get to write the history books. Thus far, Obama & the Dems have been able to position this as a crisis driven primarily by greedy capitalists. Hopefully with the ascendancy of the GOP in 2012, characters like Barney Frank, Chris Dodd, the CBC & others will be held to some sort of account. Better late than never.

  • zsqpwxxeh

    Barney Frank and Friends were in large part responsible for the housing bubble that set off the recession. In any sane country they would be indicted and prosecuted, and the whole sordid story of what happened would be revealed in court. Instead they get reelected.

    November 2012. Do it and follow through, even when these scum cry bloody murder.

    • alohadonna

      Totally on the mark!

  • fisherKing

    Herb Moses

  • Questions

    The problem with this article is that it casts blacks as noble suffering victims of white liberals. That's 180 degrees off kilter. Blacks are not "victims"; they are victimizers. It was black civil-rights leaders, working with multiracial community-oriented radical groups like ACORN, that aggressively pushed for the federally-mandated lax lending standards that led to so much securitization of bad mortgage paper.

    Barney Frank is an arrogant egalitarian, all right. But is he racist? I wouldn't think so. Let the Left hurl the charge of "racism." They're better at it than we are. We shouldn't be imitating them.

    • fisherKing

      You'll get unnecessary flack for casting all blacks in the same light. JC Watts never did that. It's better to refer to big government liberals regardless of race.

      • Questions

        Most blacks, I'm afraid, are of the Leftist cast. Some 97% voted for Obama in 2008, according to exit polls.

        By the way, "conservative" former Congressman J.C. Watts helped apply pressure on Fannie Mae to buy risky mortgages from primary lenders. Blacks aren't victims of "liberal racism," a convenient fiction. They are more like predators who advocate for the State to do their dirty work.

  • mrbean

    Ahhhh… Barney Frank and his kind must be happy as today is the day that the girly mans and the manly girls get to openly practice their deviancy and debauchery in the military. Of course, this will really contribute to our armed forces combat readiness and unit cohesivemess and morale.

  • Flipside

    So, because Barney Frank called for an international investigation of the Israeli attack on the peace flotilla, he is racist against American Black people?

    Hmmmmm. Do you think they’ll fall for that?

    • John_Kelly

      Flipside your nebulous comments make Forrest Gump look like Albert Einstein.
      Time to increase your meds.

      • Flipside

        Yeah. “Barney Frank” is kind of vague.

    • ajnn

      Huh ? Israel ?

      Flipside, you have jews on the brain. Everything, for you, is always about the jews.

      classic racist stuff.

      • Flipside

        Dude, this is a Jewish Zionist Hasbara and everything posted here serves the purpose of Jewish Zionist Israeli Jewish Zionist Hasbara. Why can’t I talk about the 500 pound gorilla in the room?

  • Fred Dawes

    I saw that one coming 30 years ago Barney Frank only looks at the behind but that is normal for a guy that likes long things

  • pagegl

    Ever wonder why the left was all for investigating the collapse of Enron but absolutely refuses to allow any investigation of the mortgage/financial industry collapse?

    • Jim_C

      What "refusal?"

    • Jim_C

      Does the Right not have congressmen and lawyers, or something?

  • Jim_C

    The vast majority of subprime loans–80%–had NOTHING to do with the CRA. The CRA incidentally, was not a problem, and in fact did quite a bit of good for many people from 1977-2006. In other words, it essentially worked for 29 years right up until Bush's second term–something this article completely fails to mention.

    Don't conflate subprime lending with the CRA. This whole "See what happens when government tries to do something good?" is pure boolsheet.

    • fisherKing

      Uh-huh. That's like saying the powder keg of European industrialized monarchies worked all the way up until World War I, in fact they did quite good until they got millions of people screwed over.

      Also 20%, or one in five, is a big number you seem so easy to disregard.

      You're trying to blame Bush for this and it won't work. The cheap houses which devalued were built under Clinton. The tech bubble which gave millions of dollars to crashed under Clinton.

      You also cannot argue that Barney Frank, Chris Dodd and Charles Schummer blocked any attempt to reign in Fannie Mae with the lame excuse of it will hurt minorities. If anyone did what Frank did they would be in prison.

      Also sell your commodities, because pretty soon people will realize we have enough to last lifetimes, if not forever with nuclear.

  • Mojo

    I say it over and over and over. The article relates in a different manner what I already have known. But why are politicians not investigated and jailed when these types of crimes take place? Why? Why!!!

  • Dispozadaburka

    Everyone is racist but Barney.
    He doesn't care what color some guy's butt is.

  • nyc1234

    Sometimes the simplest comment is the best…

  • mjazz

    Why did Massachusetts reelect him?

  • Jim

    If what the article says is true I should not be surprised. I am familiar with Barney's home town Bayonne Jew Jersey. There seems if all said is true that there was no sharp line between Barney's dad and the Mafia types that engaged in criminal monkey business.
    Rather than racism as his primary motive I think it was just Bayonne's way of doing business that Barney might not have gotten out of his system.
    Was he a racist? While all around the area became increasingly Black and
    Puerto Rican
    Bayonne remained lily white.

    The white kids there were very tough and did not hesitate to gang up on ant strange blacks that might get lost there.

    In fact our junior mafia thought them selves so tough they decided to take Mott Street.
    Ah yes the Boys from Bayonne did end up in the hospital. They made no counter attacks.
    Perhaps the cost of subway fares eh?

  • 13Sisters76

    One must give the left its due- the party of slavery, Jim Crow, and the KKK found another way to enslave and destroy minorities. Just get them addicted to the fruits of another's labor. The schools have done their part, and the pop culture, the rest.
    Destroyed families, destroyed and dangerous neighborhoods, 70% single motherhood and welfare. Just the noxious stew the demonRATs require to maintain their power.

  • Zam

    This article gives just one example, albeit a big example, of how the United States panders to its minorities. Pander, pander, pander, pander, pander, pander, pander, pander, pander, pander, pander. And what good has it done? Everybody but everybody knows the answer to that question even if they refuse to admit it. The only thing is the pandering can get to be a case of SURVIVAL as far as the United States pandering to the minority we know and love as the muslims are concerned. That is, pandering to the minority political movement known as Islam has put our very SURVIVAL in jeopardy.

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