Why I Am Not Celebrating Barney Frank’s Resignation
by Joel B. PollakRep. Barney Frank (D-MA) announced today that he will retire from Congress at the end of his term. Frank cited a series of scandals as his reasons for leaving–from the prostitution ring that ran from his apartment in the late 1980s; to his role in placing his then-boyfriend in a job at government-backed mortgage giant Fannie Mae in the 1990s, while Frank was on the House Financial Services Committee; to new questions raised today about Frank’s potential involvement in the unfolding insider trading scandal in Congress.
Frank finally apologized for his role in the housing bubble that led to the financial crisis of 2007-8 and set the stage for the worst recession since the Great Depression. Frank had shielded Fannie Mae and Freddie Mac from regulation, which in turn encouraged banks and buyers to embrace unstable mortgages. These were repackaged and sold as securities whose instability was masked due to their implicit government guarantees.
That’s not actually what happened today, though it is what should have happened long ago. Instead, Frank is retiring because he barely survived a tough challenge by Sean Bielat in the 2010 elections, because redistricting will make it harder for him to hold onto his seat, and because he cannot foresee Democrats re-taking the House. The road ahead is rough, and Frank believes he has better–perhaps more lucrative–things to do.
I am not celebrating Frank’s departure–partly because it is long overdue, partly because it would have been more satisfying to see him defeated, and partly because he is somewhat responsible for launching my political career in an exchange that went viral on YouTube:
As I recalled in Jonah Goldberg’s anthology, Proud to Be Right (HarperCollins 2010):
I wanted to challenge the hypocrisy of Rep. Frank’s attack on corporate bonuses, when congressional staffers had just earned a bonus for 2008. As I listened to his speech and heard his response to the first few questions from the floor, I was struck at how breezily he blamed everyone else for the crisis. Not content with blaming George W. Bush, Rep. Frank tried to implicate every conservative from Ronald Reagan in the 1980s all the way back to Robert Taft in the 1930s. A new question formed in my mind as I stepped to the microphone.
“How much responsibility, if any, do you have for the financial crisis?” I asked.
Rep. Frank lost his temper, labeling me as part of a “Right-wing attack” and avoiding an answer. So I do what young lawyers are taught to do when facing a hostile witness: repeat the question.
That outraged him even more, but I kept my cool. My wife did not. “Stop labeling him!” she yelled at Rep. Frank. “I like labels,” he snapped back.
Our exchange continued for a few more minutes before the dean of the school called proceedings to an abrupt and early end. I went back to the library, expecting that my standoff with Rep. Frank might merit a mention in the next morning’s Harvard Crimson, if that. Little did I know that the local Fox News affiliate had taped the debate and posted it online. Soon it was on YouTube, being watched by thousands. It was featured by both Fox and MSNBC, the Right- and Left-wing networks finding rare agreement in their judgment that Rep. Frank had behaved boorishly. I was on several television and radio shows, and received e- mails and letters from around the country. Soon afterward, several Republicans back home in Illinois encouraged me to run for Congress in my home district.
I had stumbled into Frank’s signature debating style–a form of intellectual bullying that combines partisan abuse with a barrage of meaningless detail and legislative minutiae. It is resented even by those who agree with him on the substance of the issues, and after my confrontation with Frank, I received congratulations from several left-wing Harvard professors who were happy that someone had stood up to him on a public platform.
Barney Frank is also a quick wit–all too rare on the left–and will be remembered well for being the first openly gay member of Congress, among other achievements. Yet his most damaging legacies–the housing crisis, the financial “reform” that bears his name, and the hyper-partisanship to which he eagerly contributed–outweigh Frank’s positive contributions. How unfortunate that his constituents did not eject him much sooner.
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104 Comments
I would be more prone to celebrate Barney's indictment and conviction.
And on the heels of his announcement … the Dow spikes by 300 points.
Coincidence … I think NOT !
Have we lost our last Weiner?
no we have not lost our last weiner there's; obama,schummer,pelosi,reid,biden,clinton,kerry, for starters.
The punch line to Fwank's resignation is that Rep. Maxine Waters (D-Calif.) is in line to take over as the senior Democrat on the House Financial Services Committee after Rep. Barney Frank (D-Mass.) retires. This utterly corrupt, RACIST woman isn't qualified to wash your car, much less chair such an important committee…
Another reason not to celebtrate – Maxine Waters is in line to take his spot on Financial Services. On the bright side, there just may be a good reason why she may not be right for this post … http://bit.ly/qVdDUt
I agree with you Mr Pollak, I'm only sad to see Frank slither away, probably to enjoy the rest of his life in splendor, at the expense of WE THE PEOPLE.
He should be deported to Iran, to be aKmaDinnerJackets house boy.
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Bellowing Barney takes his feathered boas and flees…..stock market up 291…….coincidence or ???
Then let's insure that there remains a GOP majority so she'll never "chair" anything again!!!
I am not sure if this question was in jest or not!!??
Have you looked at the Congress and Senate lately??
I'll vote Reid and Peloser to the front of the "class"….
Nice job Joel, but I will celebrate just the same….
BTW
I remember that day…..you kicked his ass….
It's a good day for the Republic when that political stink blossom leaves the stage. In addition to being a bully, he is an insufferable jerk. I'm just sorry he didn't stay around long enough to be indicted for what he has done to this country. He should be leaving office in disgrace rather than at his pleasure.
Based on the Penn State disclosures, buffoon-barney (chief architect of America's financial collapse) has decided to leave congress and become a college football coach.
just because he is not going to be in the Congress doesn't mean the investigations will stop… he will be investigated and will go to prison…
No!
I blame the present congress for NOT meting out a departing award to this POS of humanity.
He was party to the collapse of our economy.
Let us hope you can at least see Jan Schakowski voted out of office, Joel!
Celebrating or not — I'm still not going to miss him.
BREAKING….UPDATE:
IRAN BOMBED TWICE….
http://www.popmodal.com/video/10546/IRAN-BOMBED-T...
Regardless of with Barney Frankfurter says, he is bailing from this sinking ship of an administration that he helped drill multiple holes in its hull.
Based on what I have seen over the years, I have come to the conclusion(SWAG) that any harvard, yale, princeton grad or for that matter any ivy league school grad should be banned from entering govt. It seems that they only have a great propensity to destroy rather than build, besides not having any real world experience other than……………..well, nothing.
OCP, it would be more than righteous if he were sent into exile in Somalia.
Definitely a Weiner lover.
As long as he leaves is all that I care about. I wonder what kind of lefty-sociopath the Massachusetts' 4th Congressional District will elect next? I hear that Shelby the dog has decided to toss his collar into the race.
Joel, I hadn't seen that video. You did GREAT! I loved it.
You may not celebrate his long overdue departure, but I sure will celebrate!
I remember that video too. Thank you.
the rest of Franks retirement announcement " I am tieyahed of dis vast wight wing conspiwacy thwust upon me by wush wimbaugh and andwew bweitbart. And whyoo I see dis as an unfowtwunate circumstance I officiawy must step down as youwe wepwesentative.
Not in the least. Waters, Rangel, Peter Stark, Reid, Pelosi, Kerry, Schumer, tricky dicky Durbin, and a whole sack full of progs still need to be tossed onto the garbage heap of history. The sooner the better for America.
Dammit people, now who is going to pick out the drapes?!
Being that CRA lending, fannie/freddie had very little to do with the overall crash of the economy Barney Frank was right.
It's a common uninformed idea I see people here make all the time. That government pushing banks to lend to people who they shouldn't brought down the economy.
It wasn't a smart thing to do by any means, but all evidence shows that was merely a very small fraction of the problem.
I think you should have ended the first two paragraphs with Barney being led away in handcuffs…now, that's a happy ending.
Good riddance to bad trash.
But this piece of garbage has been hanging around stinking up the place for way, way too long.
If anyone can be said to be the poster boy for the corruption and corrosive entrenchment described in Peter Schweizer's book, Frank is it.
If Eve was formed of Adam's rib, then surely this finocchio was plucked from Nancy Pelosi's gall bladder.
And we're gonna see a lot more democrats bail. NOBODY wants to be captain of the titanic. The dems will crawl back into their coffins and stick the republicans with blame.
Aaand we have another nickname for the pint sized nut job from the East. aKmaDinnerJacket….I hadn't heard that one, I like it.
It makes sense … he's already a wide receiver.
I must quibble, Mr. Pollak: It was public knowledge that Mr. Frank's former colleague in the Massachusetts delegation, the late Gerry Studds, was gay not long after Mr. Studds was elected to Congress from the 12th District in 1972. Mr. Frank was not elected until 1980. Mr. Studds is most remembered for getting caught with his hands down a male Congressional page's pants in a big 1983 scandal. Naturally, the people of his district (remember, this is the Commonwealth of Mass-ochism we're talking about) re-elected him over and over thereafter.
I can't take credit for that one… I think I appropriated it from Dennis Miller… ; )
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I listen to Dennis most days (including right now) and hadn't heard it, so go ahead, take the credit, I know he wouldn't mind
Come on Breitbart…..what ya got on him…come on…This idiot would not leave on his on…Me thinks something is going to surface soon
Pollak is such a liar! Frank said none of this stuff. Here is what he really said:
http://www.huffingtonpost.com/2011/11/28/barney-f...
He is leaving because new rules are coming that will get in the way of his real job — insider trading and influence peddling.
Expect to see more rats leaving the Titanic.
I cannot decide which video I enjoyed more… this one, or Margaret Thatcher's verbal evisceration of the Liberals in Parliament…
You could do it Stan…
They would have had to take down Bush and Boner too, so better to just let Frank retire and not remind voters of Republican culpability.
We don't need high school dropouts at the helm of government. Sorry baggers.
Reading comprehension, sarcastic wit and intelligence are apparently not the strong suit of liberal toadies… but, but he's Unified Theory, so his brain is like Einsteins.
Einsteins brain is dead.
Studds was outed in a scandal. Barney Frank was the first congressman to voluntarily come out of the closet.
Only Republican queers have to resign in disgrace. If we did a right wing gay head count the Republicans would lose their majority.
The "missing" 13th Amendment to the Constitution of the United States reads as follows:
"If any citizen of the United States shall accept, claim, receive, or retain any title of nobility or honour, or shall without the consent of Congress, accept and retain any present, pension, office, or emolument of any kind whatever, from any emperor, king, prince, or foreign power, such person shall cease to be a citizen of the United States, and shall be incapable of holding any office of trust or profit under them, or either of them."
==============
at least the lawyers would be kept out.. the rest would be left on the sidelines by real citizens..
Look for about 30 freshman teabaggers to get sent home by the voters.
Ha ha…a liar? This coming from someone who looks the other way when their team lies, steals, and rapes.
Wow…even your SPIN is incoherent. Try posting something that makes sense or relates to the article. Copying/Pasting Fecal Matters talking points is not working for you.
So if a rapist or a thief decides to take a hiatus from their life of crime shall we forgive them because they "resigned" ?
There's always MSNBC. Frank would be the most attractive, most reasonable, most honest person in the nightly prime-time lineup.
I don't think barney would be accepted very well in Iran. After all they do have Sharia Law and we know what they think about barney's kind.
"I read it in HuffinGlue Post, so it MUST be true!!1!1!
Personally, I'd like to express my appreciation to the voters of Massachusetts's 4th congressional district for repeatedly electing this PoS for 30 years.
UT, you don't have to spam me – I am an independent and think both political parties are little more than organized crime families. I think it is time for your meds and nap. Now run along.
He is a bully. He's an ignorant buffoon. He stole money from the people who produced it, and enriched himself in the process. He also engaged in fraud, grift, and malfeseance in ways we haven't seen since Jim Trafficant.
Regardless I've taken all those defending Barney Frank to task over his economic version of "Its not the growers fault that you have a drug problem in America… after all we're just simple farmers… I blame the dealers… and the junkies themselves… yeah that's the ticket!" and have yet to witness anything that wasn't deflection and or obfuscation in return. Without Barney's direct influence in such as far back as 1992, the only meltdown in current memory would still be Chernobyl.
He's bailing before the next Republican president investigates him and his involvement with shady $$$ dealings in Washington's back rooms and halls. Plain, simple and obvious to the blind. The only thing you have to acknowledge with Barney Frank is his playing Monopoly with America's economic bones in full public view took a big old pair of brass ones.
Absolutely true. To think that Waters can make any type of financial decision which isn't against the law or where she doesn't personally benefit is a reach.
Rep. Rangel (a liar and a cheat) was honored in the halls of Congress. That's the type that's looked up to in D. C., the District of Criminals. The Banking Queen will probably get a ticker-tape parade.
When they resign, they can no longer be held to account. I submit that some damaging memos or emails or something is about to come out – yup – another scandal is brewing. Barney dipped out in order to cover his own butt, prolly the first time he ever wanted to do that…..
High profile democrats are bailing, RINOs too, because they know the job is up and they figure that folks will likely continue to vote (D) if it is a new name.
Sadly, I think they are right, and fools will continue to vote for the (D), claiming it is all about hope and change. Sad it is.
Absolutely agree, Joel pour a 55 gallon drum of whoopass on Barney. You could tell how sensitive Barney is about this issue, It's obvious he feels 99% of the fault lies at his own feet. And frankly, Barney is quitting because he knows he can't win next time.
Why do ya think I suggested Iran toi? Sheesh!!!
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That's one – 191 left in Congress to go. Good riddance Mr. Frank.
"meaningless detail and legislative minutiae". Kind of like Pollak's useless link, no?
Only a loser blames the housing crisis on Barney Frank.
Really, you would have to be stupid to think one of the 438 members of the House could cause the Great Recession. He wasn't even Chair of a committee, at the time, yet he's in this "Loch-Ness" class of legends.
Barney Frank voted in favor of legislation that allowed the agencies to buy sub-prime debt, starting in 2006. THAT'S IT. About 700 billion, of a 12,000 billion mortgage market came in the door. It was filled with bank fraud, but lets not be distracted by that when we can focus on the Economic Apocalypse one homosexual congressman can cause.
Sometimes it's humorous to come here and witness the ignorance. Fox has many of you pegged. That, and all the Youtube University grads make for a great read!
Focusing on style, over substance, is like going through life fat, drunk and stupid. Are you ready to be gamed twice?
The punch line, and we should never forget it, is he converted to conservatives because the conservatives listened to the questions and gave him answers. We didn't just attack him. I predict we will get many more converts because of this conservative habit.
Mr. Pollak-
Good job! I had seen the video, but did not realize you were he. I liked your interview with Greta also and how you expressed your change from Democrat to Republican, very well put. Stay in it!
No it wouldn't.
Barney Frank was partly responsibly for the toxic housing mortgages being cranked out by Fannie Mae and Freddie Mac, and then allowed them to be peddled as securities by Wall Street. He and other democrats encouraged the whole financial mess. Problem is, nothing has been fixed.
What? Who you going to believe me or your lying eyes? We watched the video and he said all those things. You want us to pretend the video with audio doesn't exist?
Don't tease. Please cite the evidence.
Maxine waters coulnd't balance her personal checkbook, let alone serve as chairman[woman] on the HFSC. If she ever did I wonder how many MORE tax dollars would be steered towards her husband's failed banking ventures?
As usual, the neo-Communist Astro turfer is wrong, wrong, wrong: I lived in Mr. Studds' district while he was in Congress. Did you?
FACT: Mr. Studds was elected in 1972. His homosexuality was widely known in Massachusetts during the 1970s, and Mr. Studds said absolutely nothing to deny it.
FACT: Mr. Frank did not come out of the closet publicly until 1987, four years AFTER the scandal that "outed" Mr. Studds by your claim.
As for your drivel about Republicans, I can only say this: Stay away from open flame, Straw Man.
As far as Barney's concerned, having to leave office at all is probably disgrace enough. I wouldn't be surprised if he had aspirations toward being the gay answer to Robert Byrd, or even Strom Thurmond.
Could it be possible Soros and the National Lawyer's Guild told Frank " You're a liability now, disposable, expendable–now get out!"?
He'd go! Bow and kiss toes, then run to the nearest hot mic.
"How unfortunate that his constituents did not eject him much sooner."
That last sentence sums it all up. What is wrong with people in his district and Pelosi's district? When you're approval is that low, how do you get reelected? Who are these people who vote for him over and over? I will never understand…
Thank you, Mr. Pollak, for one of the best political confrontations in my memory. I truly enjoyed watching your exchange with Frank. I'm sure you caused at least a few more of his hairs to turn gray that night!
I see Cog wheeler learned projection at his last Occcupy visit. Next he'll say WE all got ring worm and skin rot and urinate on our selves. that's coming.
Wiggle your fingers, jump up and down and spit, Cog Wheeler.
Obama is a one term send up. That's not style. That's substance. Get over it! The ultra-lefties are leaving. Washington is being emancipated. Seems too many Americans got THEM pegged.
Chris Dodd resigned for the same reason. He knew he wouldn't weather the public scrutiny.
In fact, I'm still aghast that Cuomo skated into office here in NYC.
It is sad that frank will never really be held accountable for his hate-mongering nor the economic disaster precipitated by his advocacy of home ownership for people who can't afford home ownership. But we know the world is not fair, and often the evil get rich and live full and comfortable lives.
Frank in the video reminded me of the way the liberal media characterized Senator McCarthy's bullying–perhaps too cheap for Joel to say, but a "At long last, sir, have you no decency?" would have been fun to see.
I will re-iterate what I consider one of the fundamental tenets of liberaism: Under no circumstances will a liberal ever take responsibility for making a mistake or advocating policies that lead to disasterous results. I suspect that is one of the big emotional payoffs of liberalism: never to feel the burden of responsibility.
I really liked how Joel articulated how conservatism in this day and age is compatible with intellectual discourse, and liberalism has an extremely rigid framework for what one can think, and an extremely personal means of enforcing orthodoxy. Back in the 80s, at my own legal alma mater, I have to give those liberal professors their due–they were for the most part intellectually honest and did air both sides of issues–and even gave good grades to 'conservative' blue books–with a couple of exceptions. Now the school has a tenured professor who's full time job is to talk about how racist the police are, so I assume the school is much less collegial these days.
That might be his 'happy ending' every friday night for all we know…
As long as they match the carpet.
Your superficial knowledge of the subprime crisis and straw man characterization of the criticisms is not much of a platform to school people from.
The issue barney has his fingerprints all over is the collapse of the housing bubble. Are you really so naive as to claim that freddie/fannie have only a 'small fraction' the mortgage market?
He will not escape, Nothing go's unseen.
Sweetie Pie, it must be way past your bedtime. You seem so cranky. Take two Midol, and get a good night's sleep.
Dearest, please tell us all what grade of school you flunked out of.
Great post, Joel. If they revive Sylvester the Cat, Barney's a cinch to voice him.
MSNBC could scroll what he's saying at the screen bottom with the "w"-effect removed! The Bawney tewepwomtuw!
Joel, I'm feelin' ya brother.
I understand, Jake. But just being able to walk away from the wreckage you caused is not enough. Besides, this bastard is an arrogant bully and really, really needs a comeuppance.
Bahwee makes Milton Waddams sound articulate by comparison.
How fast will another leftwingwacko take his place?
Bfrankenfurter will enjoy prison. He should be sued personally to remove the wealth he acquired being chairman of financial services committee.
This is a very good day for America. I would be willing to bet that microphone was covered with spit after he was done talking. Barney's Frank is a circus clown…
And now……..Maxine Waters! Dow crashes.
Indictment….loser
I was giddy about Bawney's retirement until I heard who was replacing him on the Finance Committtee – Maxine Waters. How the hell do Democrats keep getting away with having such idiots in places of high authority!?
The other reason that its too bad is that he won't be around to ridicule anymore.On the other hand, his party continues to excel in the production of clowns
fannie and freddie losses were a fraction of overall loses in the crash of 08.
If you want to just focus in on barney's role in fannie and freddie thats fine. But in the grand picture of the crash it played a small part.
unregulated bank over-leveraging their assets 30/40-1 on complete risk brought down the economy. the banks that were completely independent of government and barney frank brought down the economy.
The most informed person on the crash,Barry ritholtz, gave the reasons for the crash… notice whats NOT in there.
●Fed Chair Alan Greenspan dropped rates to 1 percent — levels not seen for half a century — and kept them there for an unprecedentedly long period. This caused a spiral in anything priced in dollars (i.e., oil, gold) or credit (i.e., housing) or liquidity driven (i.e., stocks).
●Low rates meant asset managers could no longer get decent yields from municipal bonds or Treasurys. Instead, they turned to high-yield mortgage-backed securities. Nearly all of them failed to do adequate due diligence before buying them, did not understand these instruments or the risk involved. They violated one of the most important rules of investing: Know what you own.
●Fund managers made this error because they relied on the credit ratings agencies — Moody’s, S&P and Fitch. They had placed an AAA rating on these junk securities, claiming they were as safe as U.S. Treasurys.
●Derivatives had become a uniquely unregulated financial instrument. They are exempt from all oversight, counter-party disclosure, exchange listing requirements, state insurance supervision and, most important, reserve requirements. This allowed AIG to write $3 trillion in derivatives while reserving precisely zero dollars against future claims.
●The Securities and Exchange Commission changed the leverage rules for just five Wall Street banks in 2004. The “Bear Stearns exemption” replaced the 1977 net capitalization rule’s 12-to-1 leverage limit. In its place, it allowed unlimited leverage for Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers and Bear Stearns. These banks ramped leverage to 20-, 30-, even 40-to-1. Extreme leverage leaves very little room for error.
•Wall Street’s compensation system was skewed toward short-term performance. It gives traders lots of upside and none of the downside. This creates incentives to take excessive risks.
● The demand for higher-yielding paper led Wall Street to begin bundling mortgages. The highest yielding were subprime mortgages. This market was dominated by non-bank originators exempt from most regulations. The Fed could have supervised them, but Greenspan did not.
●These mortgage originators’ lend-to-sell-to-securitizers model had them holding mortgages for a very short period. This allowed them to get creative with underwriting standards, abdicating traditional lending metrics such as income, credit rating, debt-service history and loan-to-value.
●“Innovative” mortgage products were developed to reach more subprime borrowers. These include 2/28 adjustable-rate mortgages, interest-only loans, piggy-bank mortgages (simultaneous underlying mortgage and home-equity lines) and the notorious negative amortization loans (borrower’s indebtedness goes up each month). These mortgages defaulted in vastly disproportionate numbers to traditional 30-year fixed mortgages.
●To keep up with these newfangled originators, traditional banks developed automated underwriting systems. The software was gamed by employees paid on loan volume, not quality.
●Glass-Steagall legislation, which kept Wall Street and Main Street banks walled off from each other, was repealed in 1998. This allowed FDIC-insured banks, whose deposits were guaranteed by the government, to engage in highly risky business. It also allowed the banks to bulk up, becoming bigger, more complex and unwieldy.
●Many states had anti-predatory lending laws on their books (along with lower defaults and foreclosure rates). In 2004, the Office of the Comptroller of the Currency federally preempted state laws regulating mortgage credit and national banks. Following this change, national lenders sold increasingly risky loan products in those states. Shortly after, their default and foreclosure rates skyrocketed.
See below.
per Barry ritholtz who is unquestionably the most informed person on the crash.
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