Peter Wallison | |
---|---|
White House Counsel | |
In office May 23, 1986 –March 20, 1987 | |
President | Ronald Reagan |
Preceded by | Fred Fielding |
Succeeded by | Arthur Culvahouse |
Personal details | |
Born | New York City,New York,U.S. | June 6,1941
Political party | Republican |
Spouse | Frieda Wallison |
Children | 3 |
Education | Harvard University (AB,LLB) |
Peter J. Wallison (born June 6,1941) is an American lawyer and the Arthur F. Burns Fellow in Financial Policy Studies at the American Enterprise Institute. [1] He specializes in financial markets deregulation. He was White House Counsel during the Tower Commission's inquiry into the Iran Contra Affair. [1] He was a dissenting member of the 2010 Financial Crisis Inquiry Commission,frequent commentator in the mass media on the federal takeover of Fannie Mae and Freddie Mac and the financial crisis of 2007–2008 and wrote Hidden in Plain Sight (2015) about the crisis and its legacy.
Wallison was born in New York City,and educated at the Capitol Page School and Harvard University (A.B. 1963,LL.B. 1966),where he was President of the Young Republicans. [2] He was admitted to the bar of New York state in 1967. [3] [4]
Emanuel Celler appointed him a United States House of Representatives Page when he was about 14,and he served for most of his high school years. The Democrats controlled the patronage,but assigned some pages,such as Wallison,to the minority party. This experience helped him become a Republican. [2]
He was a Rockefeller Republican before becoming a Reagan Republican.
On November 24,1966,he married the former Frieda Koslow (born in New York January 15,1943,A.B. Smith College 1963,LL.B. Harvard Law School 1966 admitted to New York bar in 1967,D.C. bar 1982). They have three children,Ethan S.,Jeremy L.,Rebecca K. Mrs. Wallison develops real estate in Snowmass,Colorado. [5] [6] [7] [8] [9]
They split their time between homes in Colorado and in Washington,D.C.
In 1999,Wallison told New York Times reporter Steven A. Holmes that the expansion of mortgage loans by reducing the amount borrowers have to put down and extending loans to so-called subprime borrowers was creating a situation where Fannie Mae was taking on significantly more risk. "From the perspective of many people,including me,this is another thrift industry growing up around us," he said. "If they fail,the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry." [10] The article pointed out that the Clinton Administration had put pressure on Fannie Mae to lower standards "to expand loans among low and moderate income people."
Wallison gave a eulogy at a memorial service for Don Regan in June 2003. [2]
Wallison's writing on the cause of the Financial crisis of 2007–08 have brought much comment. In December,2011,the New York Times financial columnist Joe Nocera stated that Wallison had "almost single-handedly created the myth that Fannie Mae and Freddie Mac caused the financial crisis." [11] Calling it "a big lie," Nocera suggested that Wallison had engaged in a deliberate deception. Economist Paul Krugman has also accused Wallison of deception, [12] criticizing him for—among other things—attacking Fannie and Freddie in a magazine article just a year before the subprime mortgage collapse for not doing a "better job of providing affordable home financing to a neglected portion of the mortgage market." This neglected portion consisted of "African-American ... Hispanic",and "low-income borrowers". [13] [14] [15] Wallison cites New York Times columnist Gretchen Morgenson exposing how "Democratic political operative Jim Johnson turned Fannie Mae into a political machine",and dismisses the exoneration of the GSEs as "the big lie." [16]
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: CS1 maint: others (link) 2 volumes of papers delivered at a conference on March 24, 1999 at the American Enterprise Institute, Washington, D.C.wallison dunn crutcher.
The American Enterprise Institute for Public Policy Research, known simply as the American Enterprise Institute (AEI), is a center-right think tank based in Washington, D.C., that researches government, politics, economics, and social welfare. AEI is an independent nonprofit organization supported primarily by contributions from foundations, corporations, and individuals.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the New Deal, the corporation's purpose is to expand the secondary mortgage market by securitizing mortgage loans in the form of mortgage-backed securities (MBS), allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on locally based savings and loan associations. Its brother organization is the Federal Home Loan Mortgage Corporation (FHLMC), better known as Freddie Mac. In 2023, Fannie Mae was ranked number 28 on the Fortune 500 rankings of the largest United States corporations by total revenue.
The Community Reinvestment Act is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining.
Franklin Delano Raines also known as Frank Raines is an American business executive. He is the former chairman and chief executive officer of the Federal National Mortgage Association, commonly known as Fannie Mae, who served as White House budget director under President Bill Clinton. His role leading Fannie Mae has come under scrutiny. He has been called one of the "25 People to Blame for the Financial Crisis" according to Time magazine.
The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is a publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons, Virginia. The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with the Federal National Mortgage Association, Freddie Mac buys mortgages, pools them, and sells them as a mortgage-backed security (MBS) to private investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases. The name "Freddie Mac" is a variant of the FHLMC initialism of the company's full name that was adopted officially for ease of identification.
A mortgage-backed security (MBS) is a type of asset-backed security which is secured by a mortgage or collection of mortgages. The mortgages are aggregated and sold to a group of individuals that securitizes, or packages, the loans together into a security that investors can buy. Bonds securitizing mortgages are usually treated as a separate class, termed residential; another class is commercial, depending on whether the underlying asset is mortgages owned by borrowers or assets for commercial purposes ranging from office space to multi-dwelling buildings.
A government-sponsored enterprise (GSE) is a type of financial services corporation created by the United States Congress. Their intended function is to enhance the flow of credit to targeted sectors of the economy, to make those segments of the capital market more efficient and transparent, and to reduce the risk to investors and other suppliers of capital. The desired effect of the GSEs is to enhance the availability and reduce the cost of credit to the targeted borrowing sectors primarily by reducing the risk of capital losses to investors: agriculture, home finance and education. Well known GSEs are the Federal National Mortgage Association, known as Fannie Mae, and the Federal Home Loan Mortgage Corporation, or Freddie Mac.
The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the 2007–2008 global financial crisis. The crisis led to a severe economic recession, with millions of people losing their jobs and many businesses going bankrupt. The U.S. government intervened with a series of measures to stabilize the financial system, including the Troubled Asset Relief Program (TARP) and the American Recovery and Reinvestment Act (ARRA).
Christopher C. DeMuth is an American lawyer and a distinguished fellow at the Hudson Institute, as well as director of the National Conservatism conference organized by the Edmund Burke Society. He was the president of the American Enterprise Institute (AEI), a conservative think tank, from 1986 to 2008. DeMuth is widely credited with reviving AEI's fortunes after its near-bankruptcy in 1986 and leading the institute to new levels of influence and growth. Before joining AEI, DeMuth worked on regulatory issues in the Ronald Reagan administration.
Residential mortgage-backed security (RMBS) are a type of mortgage-backed security backed by residential real estate mortgages.
The subprime mortgage crisis impact timeline lists dates relevant to the creation of a United States housing bubble and the 2005 housing bubble burst and the subprime mortgage crisis which developed during 2007 and 2008. It includes United States enactment of government laws and regulations, as well as public and private actions which affected the housing industry and related banking and investment activity. It also notes details of important incidents in the United States, such as bankruptcies and takeovers, and information and statistics about relevant trends. For more information on reverberations of this crisis throughout the global financial system see Financial crisis of 2007–2008.
Observers and analysts have attributed the reasons for the 2001–2006 housing bubble and its 2007–10 collapse in the United States to "everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan". Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates, relaxed standards for mortgage loans, and irrational exuberance" Politicians in both the Democratic and Republican political parties have been cited for "pushing to keep derivatives unregulated" and "with rare exceptions" giving Fannie Mae and Freddie Mac "unwavering support".
The Federal Housing Finance Agency (FHFA) is an independent federal agency in the United States created as the successor regulatory agency of the Federal Housing Finance Board (FHFB), the Office of Federal Housing Enterprise Oversight (OFHEO), and the U.S. Department of Housing and Urban Development government-sponsored enterprise mission team, absorbing the powers and regulatory authority of both entities, with expanded legal and regulatory authority, including the ability to place government-sponsored enterprises (GSEs) into receivership or conservatorship.
In September 2008 the Federal Housing Finance Agency (FHFA) announced that it would take over the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Both government-sponsored enterprises, which finance home mortgages in the United States by issuing bonds, had become illiquid as the market for those bonds collapsed in the subprime mortgage crisis. The FHFA established conservatorships in which each enterprise's management works under the FHFA's direction to reduce losses and to develop a new operating structure that will allow a return to self-management.
James B. Lockhart III is an American U.S. Navy officer, business executive, and, since September 2009, Vice Chairman of WL Ross & Co, which manages $9 billion of private equity investments, a hedge fund and a Mortgage Recovery Fund. It is a subsidiary of Invesco, a Fortune 500 investment management firm. He coordinates WL Ross's investments in financial services firms and mortgages. Lockhart serves co-chairs the Bipartisan Policy Center's Commission on Retirement Security and Personal Savings.
The government interventions during the subprime mortgage crisis were a response to the 2007–2009 subprime mortgage crisis and resulted in a variety of government bailouts that were implemented to stabilize the financial system during late 2007 and early 2008.
The U.S. subprime mortgage crisis was a set of events and conditions that led to a financial crisis and subsequent recession that began in 2007. It was characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages. Several major financial institutions collapsed in September 2008, with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession.
The Financial Crisis Inquiry Commission (FCIC) was a ten-member commission appointed by the leaders of the United States Congress with the goal of investigating the causes of the financial crisis of 2007–2008. The Commission has been nicknamed the Angelides Commission after the chairman, Phil Angelides. The commission has been compared to the Pecora Commission, which investigated the causes of the Great Depression in the 1930s, and has been nicknamed the New Pecora Commission. Analogies have also been made to the 9/11 Commission, which examined the September 11 attacks. The commission had the ability to subpoena documents and witnesses for testimony, a power that the Pecora Commission had but the 9/11 Commission did not. The first public hearing of the commission was held on January 13, 2010, with the presentation of testimony from various banking officials. Hearings continued during 2010 with "hundreds" of other persons in business, academia, and government testifying.
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: CS1 maint: bot: original URL status unknown (link) | Peter J. Wallison, John J. Lafalce | American Banker|March 03, 2006