In early 2000, FCA took steps to implement the sweeping change without so much as publishing the System-altering rule change in the Federal Register or contacting Congress for its papal blessing. The sneakiness did not go unnoticed by Rep. Jim Leach, R-Iowa, then chairman of the House Banking Committee. He, and his Committee's powerful constituency, commercial bankers, viewed the move as a FCS-FCA plot to gain a national charter without the approval of Congress or the U.S. Treasury. Don't worry, he soothingly told the Senate, FCS's financials are strong and FCA will police System loans to prevent another crack-up. Also, no studies had been done to forecast how this massive change would affect commercial lenders, FCS or taxpayers.
Leach is dead right.
Besides, FCS's recent near crack-up inspires anything but confidence.