With Desperate Ad, John Sununu Tries to Hide Record of Support for Bush Agenda of Lax Oversight and Accountability

FOR IMMEDIATE RELEASE

September 29, 2008

CONTACT:
Kate Bedingfield
603 782 4613 (o)/603 361 8036 (c)/ kbedingfield@jeanneshaheen.org

Caitlin Legacki
603 782 4613 (o)/603 361 9643 (c)/

WITH DESPERATE AD, SUNUNU TRIES TO HIDE RECORD OF SUPPORT FOR BUSH AGENDA OF LAX OVERSIGHT AND ACCOUNTABILITY

Shaheen holds conference call to set record straight on Sununu support for loosening oversight and accountability in financial markets

(Manchester, NH) – Former Governor and current candidate for US Senate Jeanne Shaheen today held a conference call to set the record straight on Sununu's record of supporting George Bush's agenda of lax oversight and accountability that has led to the worst crisis on Wall Street since the Great Depression.  Sununu has been making misleading attacks on Jeanne Shaheen, including in his most recent television ad, in a desperate attempt to run from his 12-year record of voting against tough oversight and accountability in the financial markets.

"John Sununu is making a desperate attempt to run from his record of support for lax oversight and accountability that have led to the crisis we're seeing today on Wall Street," Shaheen said.  "In his newest TV ad, John Sununu has claimed that he had the foresight to demand tougher regulation to try to prevent this crisis.  That's simply not the case.

"At every turn as this crisis developed, John Sununu was there pushing for less oversight and less transparency," Shaheen continued.  "He has stood with George Bush to give huge Wall Street investors everything they want while turning a blind eye to middle class families and small businesses.  John Sununu has been in Congress for 12 years and on the Senate banking committee for five of those years pushing for lax accountability.  It is unbelievable that he's now trying to point fingers for a financial crisis he helped create."SUNUNU AD WATCH

Claim

Fact

"5 years ago John Sununu wrote tough regulations for mortgage giants Fannie Mae and Freddie Mac.  Democrats blocked his bill, opposing restrictions on risky investments." 

Sununu Sat on the Banking Committee for Five Years and Could Not Get a Fannie Mae/Freddie Mac Oversight Bill Passed, Even in a Republican Congress with a Republican President.  [CQ]

Sununu's Regulation Bill Didn't Leave Committee in 2003 or 2005.  Sununu introduced S.1508, the Federal Enterprise Regulatory Reform Act of 2003 and S.190, the Federal Housing Enterprise Regulatory Reform Act of 2005.  Despite a Republican-controlled Congress, he failed to advance either beyond the Banking Committee.  [S.1508, 7/31/03; S.190, 1/26/05]

Sununu Voted Against Democratic Substitute Allowing for Greater Oversight on GSEs. Sununu voted against a substitute amendment that would have created a five member commission, appointed by the president with the consent of the Senate, to regulate Fannie Mae, Freddie Mac and the Federal Home Loan Banks. [Senate Banking, Housing and Urban Affairs Committee Vote 4/1/04]

Sununu Voted Against Greater Regulatory Powers Over Fannie Mae and Freddie Mac.  Sununu voted against an amendment that closely mirrored the Federal Housing Finance Reform Act sponsored by Rep. Oxley that passed in the House in favor of watered down legislation.  [Senate Banking, Housing and Urban Affairs Committee Votes, 7/28/05]

Rep. Oxley's House Bill "Lacked A Champion in the Senate."  The Financial Times reported in September 2008 that "after winning bipartisan support in the House, where the [Federal Housing Finance Reform Act] passed by 331 to 90 votes, the legislation lacked a champion in the Senate and faced hostility from the Bush administration."  [Financial Times, 9/9/08]

John Sununu Voted for the Financial Modernization Act Which Paved the Way for Wall Street Crash.  The Washington Post reported in September 2008 that the Financial Modernization Act "aimed to make the country's financial institutions competitive by removing the Depression-era walls between banking, investment and insurance companies… the legislation also helped pave the way for companies such as AIG and Lehman Brothers to become behemoths laden with bad loans and investments."  [House Vote #276, 7/1/99; Washington Post, 9/17/08]

John Sununu Has Consistently Favored Deregulation. 

Sununu Was "In Full Throated Opposition to Federal Regulation of Financial Markets that He's Now Strongly Promoting."  The Nashua Telegraph reported in September 2008 that, "Democratic Party leaders released videotapes Wednesday showing Republican U.S. Sen. John E. Sununu during 2006-07 in full-throated opposition to federal regulation of financial markets that he's now strongly promoting during his re-election bid."  [Nashua Telegraph, 9/25/08]

Sununu Opposed New Regulation on Credit Rating Agencies.  At a Senate Banking Committee Hearing in March 2006, John Sununu said: "I don't see the problem as being one of a lack of regulation or need for additional regulation in the area of particular business practices as much as it is a question of a lack of competition, and I think that competition is lacking in part because there are a number of barriers to entry and one of the most significant barriers to entry are regulatory, and they're the barriers that have been created by -- unintended but have been created by some of the existing regulations and we need to look carefully at those."  [Senate Banking Committee Hearing, 3/7/06]

Sununu Opposed Regulation on Hedge Funds.  At a speech at the University of New Hampshire in April, 2007, John Sununu said: "Current chairman of the Federal Reserve, former chairman of the Federal Reserve and many, many economists have argued very strenuously that hedge funds provide a very valuable role in our capital markets.  They keep them flexible, they keep them responsible.  And they provide distribution of risk through the capital markets.  And that if you start regulating them aggressively, you're going to lose that flexibility, the liquidity and the innovation of the capital markets that have helped, been a big help, in keeping our economy relatively strong…  Limited regulation."  [University of New Hampshire Speech, 4/5/07]

Sununu Warned SEC on Hedge Fund Regulations. Sununu voiced his concern with an SEC ruling that required hedge fund registration. "First and foremost I am concerned about all these new regulations and the direction it signals from the SEC," Sununu said. "It does create a bulls-eye on the industry's back," he added at the Securities Industry Association conference. [Traders Magazine, 1/1/05]

"6 months ago, Jeanne Shaheen still saw no risk, saying let them use flexibility and common sense.  Boy Jeanne, that worked out well."

Jeanne Shaheen is not yet a member of the Senate.  John Sununu has been in Congress for 12 years and served on the Senate Banking Committee for 5 years, and he refuses to take responsibility for his inaction.

Shaheen Plan Included "Tighter Regulation and Independent Oversight" on Fannie Mae and Freddie Mac.  Her plan included "tighter regulation and independent oversight" for Fannie Mae and Freddie Mac and strengthening "mortgage lending regulation by establishing minimum standards for subprime loans, including requiring mortgage brokers to prove that borrowers have the ability to pay."  [Shaheen Release, 2/28/08]

Nashua Telegraph: Sununu Argument "Strains the Limit of Credibility."  "The notion that the Republican Party has suddenly become the party of regulation, however, strains that credibility to the limit." [Nashua Telegraph, 9/29/08]

"We'll stick with effective, John Sununu."

Sununu is the 89th Most Powerful U.S. Senator and the 42nd Most Powerful Senator in the Republican Party as of 2007.  The ranking is based on the legislator's leadership positions, influence and ability to get legislation passed.  [Capitol Advantage, accessed 6/26/08]

Sununu Sat on the Banking Committee for Five Years and Could Not Get a Fannie Mae/Freddie Mac Oversight Bill Passed, Even in a Republican Congress with a Republican President.  [CQ]