Shaheen Attacks Sununu On Turbulent Economy
Thursday September 18, 2008
By: Adam Sexton
From: WMUR

MANCHESTER, N.H. -- The economic situation is playing out in New Hampshire's U.S. Senate race, with Democratic challenger Jeanne Shaheen attacking Republican incumbent Sen. John Sununu.Shaheen is laying the blame for a jittery stock market and shaky economy at the feet of Republicans in Washington."They came to town during the Bush-Sununu years with a goal of removing regulation, and that's what's happened," Shaheen said.

 But Sununu defended his record, saying that bills he pushed for would have helped prevent the current crisis.

"Jeanne Shaheen obviously doesn't know what she's talking about because I wrote legislation five years ago to improve regulation and strengthen regulation of mortgage markets," Sununu said.Sununu said the reforms he advocated for Fannie Mae and Freddie Mac were blocked until the mortgage giants faltered this summer."The key isn't having less regulation or more regulation, but getting it right," Sununu said.But in November 1999, then-Rep. Sununu voted for the Financial Modernization Act, which repealed a New Deal-era law that kept commercial and investment banks separate. Some economists think the current crisis has its roots in that act, which was sponsored by Republicans Phil Gramm, James Leach and Thomas J. Bliley.While Democrats are crying foul about the measure, an overwhelming majority of Democrats in Congress voted for the act in 1999, and President Bill Clinton signed it into law.Still, political analysts said the current bailouts and the sudden regulatory zeal is putting Republicans in an awkward position."Under a Republican president, you have the Federal Reserve basically going into the insurance business, and now Republican senators and lawmakers are caught with whiplash," said political analyst Dante Scala.Both Sununu and Shaheen said the main priority in fixing the problem is protecting the taxpayer, but taxpayer dollars have flooded toward Wall Street to help mitigate the crisis.