Richard Baker tried to prevent this crisis 12 years ago

He says today:

Everyone writes as though there were just one hearing or one piece of legislation. I think I must have had eight bills and maybe 40 hearings going back to 1996.

My background was in real estate and home building. At the time I ran for Congress, we were dealing with the S&L problem -- lax lending standards, and the American taxpayer on the hook for risks other people were taking. I saw how destructive that was to the personal wealth and businesses of many of my friends and associates. And when I looked into Fannie Mae and Freddie Mac, I saw the same problems -- only a lot bigger and a lot more dangerous.

My starting principle is this: The closer an enterprise is to the taxpayer's wallet, the more congressional oversight it requires. The further away you get from that wallet, the more freedom you should give people, because they are risking their own money, not the taxpayers'.