Franklin Raines, head of Fannie Mae and close pal 0f Barney Frank, Barack Obama and Rahm Emmanuel took a 90 Million dollar bonus and Barney said "there are no problems at Fannie Mae or Freddie Mac". In October of 2004 it was found that Fannie Mae was using deceptive and fraudulent accounting practices.
"In 2005, the Senate Banking Committee, then under Republican control, adopted a strong reform bill, introduced by Republican Sens. Elizabeth Dole, John Sununu and Chuck Hagel, and supported by then chairman Richard Shelby. The bill prohibited the GSEs from holding portfolios, and gave their regulator prudential authority (such as setting capital requirements) roughly equivalent to a bank regulator. In light of the current financial crisis, this bill was probably the most important piece of financial regulation before Congress in 2005 and 2006. All the Republicans on the Committee supported the bill, and all the Democrats voted against it. Mr. McCain endorsed the legislation in a speech on the Senate floor. Mr. Obama, like all other Democrats, remained silent."
The bill of course did not pass, and bingo - Government sponsored agencies - Fannie Mae and Freddie Mac backed all sorts of nonsense subprime loans with the full faith and resources of the US taxpayers.
Read the whole thing. There is no confusion about where the blame lies.