Barney Frank Endorsement Shows Joe Sestak's Liberal Colors

From a press release issued by Toomey for Senate:

Barney Frank Endorsement Shows Joe Sestak's Liberal Colors

Allentown, PA – It is not a coincidence that Joe Sestak's first congressional endorsement comes from Rep. Barney Frank (D-MA) — one of Congress' most liberal members and a key player in exacerbating the housing crisis.

Today, Joe Sestak will proudly accept Rep. Frank's endorsement. The question is will he also proudly defend Rep. Frank's left-wing record and his role in the housing crisis?

Housing Crisis:

As a member of the House Financial Services Committee, and later, as its chairman, Rep. Barney Frank should have used his leadership position to reform Fannie Mae and Freddie Mac and warn the nation of the housing bubble growing bigger by the day. Instead, he used his position of power to make things worse.

After an accounting scandal plagued the government-sponsored enterprises in 2003, Barney Frank led the resistance against reform, declaring: "These two entities —Fannie Mae and Freddie Mac — are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing" ( New York Times). As recently as July 14, 2008, Rep. Frank said, "I think this is a case where Fannie and Freddie are fundamentally sound; they are not in danger of going under (CNBC)."

Rep. Frank could not have been more wrong. By September 2009, Fannie Mae and Freddie Mac were tumbling towards bankruptcy and taxpayers were forced to pour $200 billion into the government sponsored enterprises. Today, taxpayers have not gotten their money back, and remain on the hook for more than $5 trillion in guarantees for Fannie and Freddie’s assets.

"In his short time in the U.S. House, Joe Sestak has already demonstrated a Barney Frank-like tendency for fiscal irresponsibility and taxpayer-funded bailouts," said Toomey Communications Director Nachama Soloveichik. "He has eagerly supported the bailouts of the Wall Street banks and the auto companies, and is touting a bill that would force families who did not borrow too much to pay for mortgages of those who did.

When it comes to putting taxpayers on the hook for trillions of dollars, Joe Sestak is giving Barney Frank a run for his money."