…Twelve years ago, then-Rep. Barney Frank told another Treasury secretary, “there is no guarantee, there is no explicit guarantee, there is no implicit guarantee, there is no wink-and-nod guarantee” of Fannie or Freddie.That denial talk is gone now.”, The Wall Street Journal

Overheard: A Ghost of Fannie’s and Freddie’s Past Haunts Capitol Hill Hearing

Lets hope forgetting history doesn’t doom us to repeat it.

Treasury Secretary Jack Lew was questioned at a congressional hearing Wednesday about the government’s profit sweeps at Fannie Mae and Freddie Mac. He said this is because U.S. taxpayers support the mortgage giants, bearing the risk of them failing again. When Rep. Michael Capuano (D., Mass.) insisted this had been the case “from day one,” Mr. Lew noted that prior to 2008 there was no explicit backstop. Many even denied there was an implicit one. Mr. Capuano shot back: “Who denied that?” As it turns out, one denial came from another member of the Massachusetts delegation. Twelve years ago, then-Rep. Barney Frank told another Treasury secretary, “there is no guarantee, there is no explicit guarantee, there is no implicit guarantee, there is no wink-and-nod guarantee” of Fannie or Freddie.

That denial talk is gone now. It shouldn’t be forgotten.