Ed Royce: “In terms of a lack of regulation, I think it's interesting to note that it was the Republicans who attempted to regulate…”

“In terms of a lack of regulation, I think it's interesting to note that it was the Republicans who attempted to regulate Fannie Mae and Freddie Mac. It was the Republicans who were attempting to bring regulation against those government-sponsored enterprises because the Federal Reserve had approached us and told us that we faced a systemic economic consequence that might bring down, not only the housing sector, but the other sectors of the economy. And who was it that pushed for those zero down payment loans? Who was it who pushed for the arbitrage over at Fannie and Freddie? Now, here's the reality. The SEC has always had the ability to prosecute securities fraud. But what happened under Madoff for, what, 18 years, 20 years under President Clinton and under President Bush is that you had an inability on the part of the young lawyers at the SEC to find that fraud. And this is something I and others have pushed for. One of the things we tried to do during the Dodd-Frank bill was to get a reform of the culture over at the SEC.”