KCStar: Moore, Jordan weigh in on nation's financial crisis
Moore, Jordan weigh in on nation's financial crisis
Congress is trying figure out how to respond to the current financial crisis, a tough test in an election year.
It also means that congressional candidates want to be heard on the subject as well.
The Senate is still considering the President's proposed $700 billion bailout and the measure is also being considered in the House Financial Services Committee.
U.S. Rep. Dennis Moore, a Lenexa Democrat, is a member of that committee. He represents the 3rd Congressional District in Kansas.
He gave a speech Wednesday during a committee hearing on the financial crisis that featured Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke.
A copy of the speech was released late Wednesday afternoon. Moore seemed to blame Republicans.
"The current crisis is the result of a combination of irresponsible financiers pushing the limits of the marketplace, and the (Bush) administration that failed to properly regulate the financiers' actions in the public interest," he said. "Until 2007, Congress did not provide effective oversight of these regulators or of this marketplace."
Democrats took control of the Congress in 2007.
Wait a minute, complained Moore Republican opponent_ State Sen. Nick Jordan of Shawnee.
He issued a statement Wednesday blaming the Congress in general and Moore in particular.
He said the problems facing the country stem from the failure of Fannie Mae and Freddie Mac and their lobbying of the Congress to substantially increase the amount of high risk loans.
"These two government sponsored entities have been propped up by Congress for years," Jordan said in a statement. "This includes Dennis Moore, who has served on the Financial Services Committee for ten years and who's received over $30,000 in contributions from them."
A commentary this week on Bloomberg.com recounted a bill before the U.S. Senate in 2005 that would have severely limited the ability of those financial giants to take on high risk loans.
Although the measure came out of a Senate committee, it was opposed by Democrats and quickly became a partisan issue, which eventually killed the bill.
"If that bill had become law, then the world today would be different," wrote the author, Kevin Hassett. "In 2005, 2006 and 2007, a blizzard of terrible mortgage paper fluttered out of the Fannie and Freddie clouds, burying many of our oldest and most venerable institutions."
Submitted by Jim Sullinger on September 25, 2008 - 9:14am.