In 2003 he said Fannie Mae and Freddie Mac were both fine. He was mistaken, but it was an honest mistake - everyone makes them. And politicians seem to have an awful time understanding economics - especially the ones who have been in Washington so long (15 terms?).
But he lied to the American people in 2008.
In July 2008, then-Treasury Secretary Henry Paulson called Frank and told him the government would need to spend “billions of taxpayer dollars to backstop the institutions from catastrophic failure,” according to Paulson’s recent book. Frank, despite that conversation, appeared on national television two days later and said the companies were “fundamentally sound, not in danger of going under.”Deliberately
Unlike 2003 — when, Frank said, he didn’t realize what was going on — this time, he was deliberately trying to reassure the public, he said.
“It was part of a conscious strategy to say to people, ‘Hey, look, we think we can handle this,’ ” he said.