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From the American Dream to … Bailout America: How the Government
From the American dream to … bailout America: How the government loosened credit standards and led to the mortgage meltdown Compiled by Edward Pinto, American Enterprise Institute In the early 1990s, Fannie Mae‘s CEO Jim Johnson developed a plan to protect Fannie‘s lucrative charter privileges bestowed by Congress. Ply Congress with copious amounts of affordable housing and Fannie‘s privileges would be secure. It required ―transforming the housing finance system‖ by drastically loosening of loan underwriting standards. Fannie garnered support from community advocacy groups like ACORN and members of Congress. In 1995 President Clinton formalized Fannie‘s plan into the National Homeownership Strategy. President Clinton stated it ―will not cost the taxpayers one extra cent.‖ From 1992 onward, ―skin in the game‖ was progressively eliminated from housing finance. And it worked – Fannie‘s supporters in and outside Congress successfully protected Fannie‘s (and Freddie‘s) charter privileges against all comers – until the American Dream became Bailout America. TIMELINE Credit loosening Warning 1991 HUD Commission complains ―Fannie Mae and Freddie Mac‘s underwriting standards are oriented towards ‗plain vanilla‘ mortgage‖ [Read More] 1991 Lenders will respond to the most conservative standards unless [Fannie Mae and Freddie Mac] are aggressive and convincing in their efforts to expand historically narrow underwriting [Read More] 1992 Countrywide and Fannie Mae join forces to originate ―flexibly underwritten loans‖ [Read More] 1992 Congress passes -
The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008 STAFF REPORT U.S
U.S. House of Representatives Committee on Oversight and Government Reform Darrell Issa (CA-49), Ranking Member The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008 STAFF REPORT U.S. HOUSE OF REPRESENTATIVES 111TH CONGRESS COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM ORIGINALLY RELEASED JULY 1, 2009 * UPDATED MAY 12, 2010 INTRODUCTION The housing bubble that burst in 2007 and led to a financial crisis can be traced back to federal government intervention in the U.S. housing market intended to help provide homeownership opportunities for more Americans. This intervention began with two government-backed corporations, Fannie Mae and Freddie Mac, which privatized their profits but socialized their risks, creating powerful incentives for them to act recklessly and exposing taxpayers to tremendous losses. Government intervention also created “affordable” but dangerous lending policies which encouraged lower down payments, looser underwriting standards and higher leverage. Finally, government intervention created a nexus of vested interests – politicians, lenders and lobbyists – who profited from the “affordable” housing market and acted to kill reforms. In the short run, this government intervention was successful in its stated goal – raising the national homeownership rate. However, the ultimate effect was to create a mortgage tsunami that wrought devastation on the American people and economy. While government intervention was not the sole cause of the financial crisis, its role was significant and has received too little attention. In recent months it has been impossible to watch a television news program without seeing a Member of Congress or an Administration official put forward a new recovery proposal or engage in the public flogging of a financial company official whose poor decisions, and perhaps greed, resulted in huge losses and great suffering. -
8900 Michael's Chapters.Indd
2004 PRESIDENTIAL TRANSITION S E R I E S FROM Becoming an Effective Political Executive: 7 Lessons from Experienced Appointees Judith E. Michaels Essays on Working in Washington by: John H. Trattner, Council for Excellence in Government Dana Michael Harsell, Hartwick College Mark A. Abramson, IBM Center for The Business of Government Paul R. Lawrence, IBM Business Consulting Services Second Edition January 2005 Part II Essays on Working in Washington Working with the Congress By John H. Trattner Working with the Media By John H. Trattner Working with Career Executives to Manage for Results By Dana Michael Harsell Working to Transform Your Organization By Mark A. Abramson and Paul R. Lawrence 20 IBM Center for The Business of Government BECOMING AN EFFECTIVE POLITICAL EXECUTIVE Working to Transform Your Organization By Mark A. Abramson, IBM Center for The Business of Government and Paul R. Lawrence, IBM Business Consulting Services (Adapted from Transforming Organizations) Transforming organizations is hard work. It is not • Department of Defense (DoD) under Deputy From these case studies of the four organizations, for the fainthearted or thin-skinned. A leader is Secretary (and then Secretary) William Perry. eight common lessons emerged about how lead- not going to win many new friends or popularity The DoD case study focuses on procure- ers successfully undertake large-scale transforma- contests by undertaking major transformation ini- ment reform within the Department of tion initiatives. tiatives. In spite of the difficulty, we expect trans- Defense, including key roles played by formation to continue as 20th century bureaucracies Under Secretary of Defense for Acquisition Lesson 1: Select the Right Person are streamlined into high-performing 21st century and Technology Paul Kaminski, Deputy organizations. -
Contractor Reports: Executive Summaries and Bibliographies
65 APPENDIX E: CONTRACTOR REPORTS: EXECUTIVE SUMMARIES AND BIBLIOGRAPHIES RAND SETTING PRIORITIES AND COORDINATING FEDERAL R&D ACROSS FIELDS OF SCIENCE: A LITERATURE REVIEW SRI INTERNATIONAL SYMPOSIUM ON INTERNATIONAL MODELS OF BUDGET COORDINATION AND PRIORITY SETTING FOR S&T These reports were prepared as background for the study undertaken for the National Science Board by the NSB Ad Hoc Committee on Strategic Science and Engineering Policy Issues. The contents of these reports are the responsibility of the respective contractors and do not neces- sarily reflect the views of the Committee or the National Science Board. FEDERAL RESEARCH RESOURCES: 66 A PROCESS FOR SETTING PRIORITIES RAND SETTING PRIORITIES AND COORDINATING FEDERAL R&D ACROSS FIELDS OF SCIENCE: A LITERATURE REVIEW Steven W. Popper, Caroline S. Wagner, Donna L. Fossum, William S. Stiles DRU-2286-NSF April 2000 Prepared for the National Science Board Science and Technology Policy Institute The RAND unrestricted draft series is intended to transmit preliminary results of RAND research. Unrestricted drafts have not been formally reviewed or edited. The views and conclusions expressed are tentative. A draft should not be cited or quoted without permission of the author, unless the preface grants such permission. RAND IS A NONPROFIT INSTITUTION THAT HELPS IMPROVE PUBLIC POLICY THROUGH RESEARCH AND ANALYSIS. RAND’S PUBLICATIONS AND DRAFTS DO NOT NECESSARILY REFLECT THE OPINIONS OR POLICIES OF ITS RESEARCH SPONSORS. SETTING PRIORITIES AND COORDINATING FEDERAL R&D ACROSS FIELDS OF SCIENCE: A LITERATURE REVIEW 67 APPENDIXRAND E (CONTINUED) PREFACE The National Science Board is presently exploring how the U.S. federal government sets priorities in research and development and whether changes are needed in the decision-making process. -
Interim Report Advisory Committee Human Radiation Lxperzments
Interim Report of the Advisory Committee . on Human Radiation Lxperzments October 21,1994 DISCLAIMER This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied. or assumes any legal liability or responsi- bility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Refer- ence herein to any specific commercial product, process, or service by trade name. trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, ram- mendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. DISTRIBUTION OF THIS DOCUMENT IS LINUMITm , . _. -.-,..- DISCLAIMER Portions of this document may be illegible in electronic image products. Images are produced from the best available original document. ADVISORYCOMMITTEE ON HUMANRADIATION EXPERIMENTS 1726 M STREET,N.W., SUITE 600 WASHINGTON,D.C. 20036 WMORANDUM TO: Members of the Interagency Working Group Secretary Hazel O'Leary, Department of Energy Secretary William Perry, Department of Defense Attorney General Janet Reno, Department of Justice Secretary Donna Shalala. Department of Health and Human Services Secretary Jesse Brown, Department of VeteransAflairs Director Alice Rivlin, Ofice of Management and Budget Director James Woolsey, Central Intelligence Agency Administrator Daniel Goldin, National Aeronautics and Space Administration FROM: The Advisory Committee on Human Radiation Experiments DATE: October 21,1994 RE: Interim Report The Advisory Committee on Human Radiation Experiments is pleased to transmit its Interim Report to the Interagency Working Group. -
Ashton B. Carter, William J. Perry (1999). Preventive Defense
list’ contains the most dangerous threats to the existence of the USA and Western world. The former Soviet Union had the Ashton B. Carter, William J. Perry capability to destroy Western values and (1999). Preventive Defense: A Western order, but such an enemy to the New Security Strategy for West no longer exists. The major part of US America. defense planning is now directed towards maintaining the capability to wage two Washington: Brookings Institution major theater wars. Such regional contin- Press. pp. 243. gencies might endanger American interests ISBN 0-8157-1308-8 and security, but would not question the existence of the United States. Therefore, wars of this type can be categorized in belonging to the ’B-list’ of threats. Public The United States of America is found- interest seems to be oriented mostly ing its national security and military strate- towards the activities that deal with the ’C- gies on three groups of activities, called list’ of threats, like those in Bosnia- preparing, shaping and responding. Herzegovina or Kosovo. However, the ’A- Responding capability refers to current list’ may not remain clear forever. One of readiness of the armed forces to engage the most important goals of the American and successfully annihilate open threats to security system is to keep the ’A-list’ clear national security. That readiness was as long as possible. Dr Perry and Dr Carter assessed during the nineties according to argue that this is the essential element of the military capability in successfully waging the preventive defense strategy, which they and winning two almost simultaneous major theoretically developed at Harvard and theater wars, like the one in Korea and in Stanford universities and practically The Gulf. -
CONGRESSIONAL RECORD—HOUSE October 28
H9586 CONGRESSIONAL RECORD Ð HOUSE October 28, 1997 Mr. Speaker, first, this is a very potential threat to philanthropic inter- The Depot Caucus believes this work straightforward rule, one hour of de- ests, it would be difficult for the Pre- should go to the depots, regardless of bate on the conference report. I have sidio Trust to meet its self-sufficiency cost and regardless of what the Defense no problem with the rule. Secondly, I requirements without a timely and Department needs. They are protecting would like to say to my distinguished thorough cleanup of the Presidio. Se- their home turf, and I respect that, but colleague, the gentleman from Ohio curing the leases necessary to generate it is also bad policy, and this is not [Mr. KASICH] that there is a different revenues is essential to the success of what we should be supporting. It puts perspective and point of view on the trust, and can only be accom- our troops at a disadvantage. Bosnia. This obviously is not the time plished if the cleanup is timely and The Secretary of Defense and his nor the place for us to engage in sub- thorough. military commanders need the flexibil- stantive debate on that matter. I would like to yield to the gen- ity on the current law to modernize. To With the balance of the time, Mr. tleman from Colorado for his final re- do so, they need to have the ability to Speaker, I would like to, for the pur- marks. take the best and most appropriate poses of colloquy, engage the distin- Mr. -
Nominations Submitted to the Senate Checklist of White House Press
Administration of William J. Clinton, 1996 881 the dinner, he returned to Washington, DC, which was sent to the Senate on October 27, arriving after midnight. 1995. The President announced his intention to nominate Arma Jane Karaer as Ambassador Submitted May 15 to Papua New Guinea, to the Solomon Is- Christina A. Snyder, lands, and to Vanuatu. of California, to be U.S. District Judge for The President accorded the personal rank the Central District of California, vice Ed- of Ambassador to James W. Pardew, Jr., in ward Rafeedie, retired. his capacity as U.S. Special Representative for Military Stabilization in the Balkans. Thomas W. Thrash, Jr., The President announced his intention to of Georgia, to be U.S. District Judge for the nominate Alan Philip Larson to be an Assist- Northern District of Georgia, vice Robert L. ant Secretary of State for Economic and Vining, Jr., retired. Business Affairs. Submitted May 16 J. Rene Josey, of South Carolina, to be U.S. Attorney for Nominations the District of South Carolina for the term Submitted to the Senate of 4 years, vice J. Preston Strom, Jr., re- signed. The following list does not include promotions of members of the Uniformed Services, nominations to the Service Academies, or nominations of For- eign Service officers. Checklist of White House Press Releases Submitted May 13 The following list contains releases of the Office Harold Walter Geisel, of the Press Secretary that are neither printed as of Illinois, a career member of the Senior items nor covered by entries in the Digest of Foreign Service, class of Minister-Counselor, Other White House Announcements. -
The Dc Revitalization
APPENDIX ONE: THE D.C. REVITALIZATION ACT: HISTORY, PROVISIONS AND PROMISES Photo by Michael Bonfigli 22614 DC Appleseed Report-PC.indd 80 12/4/08 6:56:31 PM Jon Bouker, Arent Fox LLP residents, representing 22,000 households, left between 1990 and 1995. This flight contributed to the erosion of the District’s tax base and exacerbated budget shortfalls.171 It was a vicious cycle that was driving the city toward insolvency. The growing economic crisis would soon come to the attention of the Clinton Administration and the newly elected Republican Congress. Despite their myriad differences on the wide range of national When Congress granted home rule to the issues facing the country, the President District of Columbia in 1973,167 Rep. Charles and the Congress would have to come C. Diggs, Jr., then chair of the House D.C. together to prevent the Nation’s Capital Committee, declared that Washington’s from sliding into bankruptcy. Their analysis residents had become “masters of their ultimately would examine both sides of the own fate.”168 Led by a democratically city’s balance sheet: the federally imposed elected mayor and city-council, the District limitations on revenue and the District’s own was not quite its own “master” but a semi- expenditures. autonomous, unique, government entity with city and state functions and limited Because tackling the District’s revenue power over its own budget and laws.169 limitations presented far too many political However, a mere two decades later, the challenges for the Congress and the District’s limited home rule was in crisis. -
Fannie Mae and Freddie Mac Get Away with It for So Long?." Fannie Mae and Freddie Mac: Turning the American Dream Into a Nightmare
McDonald, Oonagh. "Why Did Fannie Mae and Freddie Mac Get Away with It for So Long?." Fannie Mae and Freddie Mac: Turning the American Dream into a Nightmare. London: Bloomsbury Academic, 2012. 266–282. Bloomsbury Collections. Web. 26 Sep. 2021. <http:// dx.doi.org/10.5040/9781780930039.ch-012>. Downloaded from Bloomsbury Collections, www.bloomsburycollections.com, 26 September 2021, 14:30 UTC. Copyright © Oonagh McDonald 2012. You may share this work for non-commercial purposes only, provided you give attribution to the copyright holder and the publisher, and provide a link to the Creative Commons licence. 12 Why Did Fannie Mae and Freddie Mac Get Away with It for So Long? A weak regulator Limits of its authority Quite simply, there were two reasons for this: the “weakness” of the regulator (the Offi ce of Housing and Enterprise Oversight, or OFHEO), and the lobbying conducted by Fannie Mae and Freddie Mac. The fi rst reason makes it look as though OFHEO was simply asleep on the job or in the grip of the Enterprises, but a brief examination of the powers and resources available to the regulator will show that things were not quite that simple. OFHEO was established as part of the Act which gave Fannie and Freddie their Charters in 1992.1 It was the GSEs’ “safety and soundness regulator” and an independent agency within the Department of Housing and Urban Development (HUD) until it was abolished in 2008. HUD was the “mission” regulator of Fannie Mae and Freddie Mac, charged with ensuring that the Enterprises enhanced the availability of mortgage credit by creating and maintaining a secondary market for residential mortgages. -
Presidential Documents
Weekly Compilation of Presidential Documents Monday, January 31, 1994 Volume 30ÐNumber 4 Pages 135±165 1 VerDate 25-MAR-98 11:23 Mar 28, 1998 Jkt 010199 PO 00001 Frm 00001 Fmt 1249 Sfmt 1249 E:\TEMP\P04JA4.000 INET03 Contents Addresses to the Nation Communications to CongressÐContinued State of the UnionÐ148 Cyprus, letterÐ146 Greece, agreement on Social Security, Addresses and Remarks message transmittingÐ158 See also Appointments and Nominations Organization of American States protocols, Los Angeles earthquake message transmitting to the SenateÐ158 Roundtable discussionÐ135 TeleconferenceÐ141 Executive Orders Radio addressÐ139 North Pacific Anadromous Fish Appointments and Nominations CommissionÐ159 North Pacific Marine Science OrganizationÐ Air Force Department, Assistant SecretaryÐ 159 147 Principles for Federal Infrastructure Army Department, Assistant SecretariesÐ147 InvestmentsÐ160 Defense Department, Secretary, remarksÐ 144 Interviews With the News Media Environmental Protection Agency, Region I Exchanges with reporters AdministratorÐ160 Oval OfficeÐ143 Federal Maritime Commission, State FloorÐ144 CommissionerÐ147 Transportation Department, U.S. Coast Statements by the President Guard, CommandantÐ157 See Appointments and Nominations U.S. Court of Appeals, judgesÐ160 Supplementary Materials U.S. District Court, judgesÐ160 Veterans Affairs Department, Deputy Acts approved by the PresidentÐ165 Assistant SecretaryÐ159 Checklist of White House press releasesÐ164 Digest of other White House Communications to Congress announcementsÐ162 -
The Logic of Zero
november / december 2oo8 The Logic of Zero Toward a World Without Nuclear Weapons Ivo Daalder and Jan Lodal Volume 87 • Number 6 The contents of Foreign Affairs are copyrighted.©2008 Council on Foreign Relations, Inc. All rights reserved. Reproduction and distribution of this material is permitted only with the express written consent of Foreign Affairs. Visit www.foreignaffairs.org/permissions for more information. The Logic of Zero Toward a World Without Nuclear Weapons Ivo Daalder and Jan Lodal U.S. nuclear weapons were born nearly 65 years ago with the purpose of winning a worldwide war against Nazi Germany and imperial Japan. They grew up to deter a massive Soviet army that threatened to invade and dominate all of Europe. With the disap- pearance of that threat almost 20 years ago, nuclear weapons entered middle age in search of a new mission—a search that continues to this day. Some suggest nuclear weapons are necessary to deter, or even preempt, the proliferation of nuclear weapons and other weapons of mass destruction. Others believe they are needed to destroy deeply buried, hardened targets in hostile states. But the reality is that only one real purpose remains for U.S. nuclear weapons: to prevent the use of nuclear weapons by others. That reality has yet to sink in. U.S. nuclear policies remain stuck in the Cold War, even as the threats the United States faces have changed dramatically. Today, the gravest threat comes from the possibility of terrorists bent on delivering a devastating blow against the United States acquiring the capacity to do so with nuclear weapons.