GLENN: Maybe I'm wrong, but why is it we're listening to the same people who told us there wasn't a problem? Why is it we're listening to the same people who designed the crash? Why are we now telling -- listening to them and giving them credibility? Why are we listening to Barney Frank? Do you know who helped write that speech yesterday for Barack Obama? Chris Dodd and Barney Frank. Why would we listen to these people when they were the ones who told us Barney Frank said last summer, "Oh, let me tell you something about CitiBank -- not CitiBank, Freddie and Fannie, they're fantastic. There's no problems. Why is everybody trying to talk Freddie and Fannie down?" Because it's the truth. And now he's saying, "Oh, this is going to work," except when he's on ABC.
Do you happen to have the clip of him saying, from ABC Good Morning America? Do you have the whole clip or have you had it isolated? Yeah, okay, listen to this from Barney Frank.
FRANK: As a result of having bought a lot of bad stuff, people wouldn't buy good stuff. The Bush administration came to us and said if you don't give us $700 billion right away, there will be a collapse. Now, we have a problem because the initiative is with the administration. But it hasn't been $700 billion. We did vote the authorization, but we said that after they spent the first half, they were going to have to notify congress before they could spend the second half. We are sufficiently dissatisfied with what the Bush administration did with the first half. Now, that second 350 is frozen and is not being spent until we come to some agreements with the Obama administration about how to spend it.
VOICE: Mr. Chairman, your title is chairman of the house financial committee. I mean, certainly this isn't just about you looking to the administration. You have a role in this, also. You approved the TARP plan, you approved the spending. And the question is where is the accountability? Do you know where that money went?
FRANK: I'm trying to frame that. No, in part we don't need it. First of all, and this is not just the technical things such as stressing the title. It's the financial services committee. I say that because everything, Senate finance committee, they focus on taxes. Yes, we know in part where it went. We are unhappy with that. We set up a mechanism to monitor it and because we are unhappy with it, we have frozen the second half of it.
GLENN: Stop for a second because I've got to come back. We're going to take a break and I've got to come back. You have to hear the rest of it. This guy has had no -- "What? It's not my fault. It's Bush's fault." Bush told him it was in trouble and they were only doing what Bush told him to do. Where is the accountability? Why are we still listening to these people?
GLENN: The truth on Ayn Rand from fiction to fact, coming up.
GLENN: So Barney Frank, and let me just play a little bit of the Barney Frank interview there on ABC television.
FRANK: We are sufficiently dissatisfied with what the Bush administration did with the first half. But that second 350 is being frozen and is not being spent until we come to some agreements with the Obama administration about how to spend it.
VOICE: Mr. Chairman, your title is chairman of the house financial committee. I mean, certainly this isn't just about you looking to the administration. You have a role in this, also.
FRANK: Technically --
VOICE: You approved the TARP plan, you approved this spending and the question is where is the accountability. Do you know where that money went
FRANK: I'm trying to understand that. No, we don't need it and this is not just a technical thing since you are stressing the title.
GLENN: What does that have to do with anything?
FRANK: We set up a mechanism to monitor it and because we are unhappy with it, we have frozen the second half of it.
VOICE: But just think of that as the --
FRANK: I'm sorry. If you keep interrupting, we can't have a coherent conversation. These are not subjects that can be answered in 18 seconds. You asked me what happened, I told you. They spent the $350 differently than what they told us. We expected them to spend a lot on diminishing foreclosures. They refuse to do that. As a result we have frozen the second half and we won't unfreeze it until we get an agreement, and I think we will because we have a different and I think more flexible administration.
VOICE: Let me ask you a little bit more different question. You said we have two different crises.
GLENN: Stop for a second. This is what Barney Frank is saying: Don't look at me. Don't look at me. That's the problem here. Do you know that the SEC was alerted on Madoff? Eight times. In fact, in the end one person went to and actually met with the SEC, the head person here in New York, and said, "Please listen to me, this is not right. Something's wrong. I have nothing to gain, I have nothing to lose here. I am only as a concerned citizen. This is not right. I've done my homework." The SEC did nothing. This is not a failure of capitalism. This isn't a failure of the administration. This is a failure of government.