Organizing for America

DEBATE REALITY CHECK: MCCAIN RECORD ON REFORM

TONIGHT:

McCain: “Sure, but let me point out, I also warned about Fannie Mae and Freddie Mac and warned about corporate greed and excess and CEO pay and all that. A lot of us saw this train wreck coming.”

THE FACTS:

MCCAIN IS A “LATECOMER TO THE DEBATE” OVER REFORMING FANNIE AND FREDDIE AND HE ADMITTED THAT HE DID NOT ANTICIPATE THE HOUSING CRISIS

Politifact: McCain Is “A Latecomer To The Debate” Over Congressional Efforts To Increase Oversight Of Fannie And Freddie. “First of all, congressional efforts to increase oversight of Fannie Mae and Freddie Mac extend back to the early 1990s, making McCain a latecomer to the debate. The regulatory efforts proved unsuccessful because of Congress’ complicated relationship with the firms, whose dominance in the home financing market makes their stability critical to the economy.” [Politifact, accessed: 9/19/08 ]

McCain Said “I Don’t Claim To Be Smart Enough” To Offer A Solution To The Mortgage Crisis And Admitted That He Did Not Anticipate The Housing Crisis. In a meeting with the editorial board of New Hampshire’s Keene Sentinel, McCain responded to a question regarding the sub-prime mortgage loan crisis saying, in part, “I don’t know how bad it’s gonna get. And obviously, the worse it gets, then the more there is a role for government. But I can't come down yet and give you a specific solution, because I don't claim to be smart enough. But I do have some confidence in Paulson. And I’m glad to see him more and more active in this issue. But I’d love to give you a solution, but I don’t know one.” McCain also said “So, I’d like to tell you that I did anticipate it, but I have to give you straight talk, I did not.” [McCain Interview with editorial board of New Hampshire’s Keene Sentinel, 12/4/07, http://www.youtube.com/watch?v=GTmIJ5Aag2Q]

MCCAIN WAS ONE OF 19 SENATORS WHO OPPOSED A BILL TO ESTABLISH AN INDEPENDENT REGULATORY AGENCY TO OVERSEE FANNIE AND FREDDIE

In 1992, McCain Opposed Establishing An Independent Regulatory Agency To Regulate Freddie Mac and Fannie Mae. McCain voted against the Federal Housing Regulatory Reform Act which would have created an independent regulatory agency within the Department of Housing and Urban Development to oversee the activities of Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. The bill passed 77-19. [1992 Senate Vote #137, 7/1/92]

MCCAIN CAMPAIGN MANAGER RICK DAVIS’ FIRM WAS PAID BY FREDDIE MAC AND IS STILL ON THEIR PAYROLL

New York Times: McCain Campaign Manager Rick Davis’ Firm Was Paid by Freddie Mac. “One of the giant mortgage companies at the heart of the credit crisis paid $15,000 a month from the end of 2005 through last month to a firm owned by Senator John McCain’s campaign manager, according to two people with direct knowledge of the arrangement. The disclosure undercuts a remark by Mr. McCain on Sunday night that the campaign manager, Rick Davis, had had no involvement with the company for the last several years. … They said Mr. Davis’s firm, Davis Manafort, had been kept on the payroll because of his close ties to Mr. McCain, the Republican presidential nominee, who by 2006 was widely expected to run again for the White House.” [New York Times, 9/23/08 ]

Roll Call: McCain Campaign Manager Rick Davis’ Lobbying Firm Remains On The Payroll Of Freddie Mac. “The lobbying firm of Rick Davis, Sen. John McCain’s (R-Ariz.) campaign manager, remains on the payroll of mortgage giant Freddie Mac, according to two sources with knowledge of the arrangement. The firm, Davis Manafort, has collected $15,000 a month from the organization since late 2005, when Freddie Mac and Fannie Mae dissolved a five-year-old advocacy group that Davis earned nearly $2 million leading, the sources said.” [Roll Call, 9/23/08 ]

MCCAIN DID NOT SIGN ONTO OBAMA’S “SAY ON PAY” BILL TO GIVE SHAREHOLDERS A VOTE IN TOP OFFICERS’ COMPENSATION AND MCCAIN’s ECONOMIC ADVISER SAID MCCAIN OPPOSED LEGISLATIVE OR REGULATORY CURES FOR EXECUTIVE PROBLEMS

McCain Has Attacked Executive Compensation But He “Opposes New Government Steps To Curb Pay And Instead Favors Private-Sector Intervention”; McCain Has Not Signed Onto Obama’s “Say-On-Pay” Bill To Give Shareholders A Vote On Top Officers’ Compensation. “Sens. John McCain and Barack Obama both attacked executive compensation this past week. Unlike Sens. Obama and Hillary Clinton, however, the likely Republican nominee opposes new government steps to curb pay and instead favors private-sector intervention. … Democrats support a Senate bill that would require public companies to give shareholders an annual nonbinding vote on top officers' compensation. Sen. Obama, of Illinois, introduced the measure, similar to one that passed the House last year. ‘Washington needs to act immediately to pass this legislation’ and change ‘a system where bad behavior is rewarded,’ Sen. Obama said in Friday's prepared remarks. Obama staffers recently renewed his request for Senate hearings on the measure. If the ‘say-on-pay’ bill doesn't pass this year, it ‘will be a priority for Sen. Obama as president,’ campaign policy director Heather Higginbottom says. … Sen. McCain hasn't taken a stance on the say-on-pay bill, and opposes legislative or regulatory cures for executive-pay problems, says senior policy adviser Douglas Holtz-Eakin.” [Wall Street Journal, 4/12/08 ; S 1181, introduced 4/20/07]