Who put Berny Frank, Mr. Sleazy gay prostitution "john" in charge of Fannie/Freddy?

First, let's go back memory lane to the year 1989, Washington Post reported:

TV Movie Led to Prostitute's Disclosures

Prostitute and pimp Stephen L. Gobie settled in with his "girls" in his Georgetown town house one evening in late 1987 to watch "The Mayflower Madam" on television. As Candice Bergen portrayed upscale madam Sydney Biddle Barrows, Gobie's companions had an idea.

"The girls turned to me and said, 'You're just like her,' " Gobie recalled in an interview yesterday. "That's when I realized that I was in the middle of a developing story that could be worth something someday. I told them, 'One day, don't be surprised if you see me on TV.' "

Gobie's dream has come true. His accusation that Rep. Barney Frank (D-Mass.) knew that Gobie had operated a prostitution service out of Frank's Capitol Hill apartment became national news after it was first reported Friday by the Washington Times.

Frank, one of two openly gay members of Congress, confirmed Friday that he paid Gobie for sex, hired him with personal funds as an aide and wrote letters on congressional stationery on his behalf to Virginia probation officials, but Frank said he fired Gobie when he learned that clients were visiting the apartment.

Frank, a leading House liberal, likened himself to Henry Higgins, who in "Pygmalion" tries to transform a cockney waif into a member of English society. Gobie dismissed that as "garbage." "This is not the case of the poor waif who is being sheltered," Gobie said. "This was the first time he felt good in a relationship. Here's a guy who didn't have a social life until he was 45."

Gobie's craving for public attention also has produced an uproar in Montgomery County. Gobie said he maintained a relationship with Gabriel A. Massaro, the principal of Chevy Chase Elementary School, and used an office at the school in late 1987 to make telephone calls and have one client meet a prostitute.

....

It goes on. Sleazy and disgusting all the way. It's not "new news". It's very much old news, and no one remembers.

Berny Frank, a client of Gay prostitution, who provided his own apartment to conduct non gay prostitution, remained in congress to lead us all to the doomsday collapse we are witnessing. Did no one ask, even back then, whether Frank had criminal implications by providing prostitution services in his apartment? Wikipedia page says he was reprimanded, but ethics committee concluded the allegations were not credible. What's wrong with the people of Massachusetts who have reelected him?

My question is: Who knew this, and still allowed this mumbling buffoon to be in charge of anything - in particular the financial system?