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Bachus Calls On Chairman Frank To Hold Legislative Hearing On Republican Plan To End The Bailout Of Fannie And Freddie


WASHINGTON, Sep 15 -

-  Financial Services Committee Ranking Member Spencer Bachus made the following statement during a Capital Markets Subcommittee hearing on Fannie Mae and Freddie Mac.

"During the two years that Fannie Mae and Freddie Mac have been controlled by the Federal government, House Republicans have introduced a number of measures to immediately address the failures of the GSEs.  We have released a detailed set of principles to protect taxpayers from further losses and future bailouts, and we have suggested ways to build a more sustainable housing finance system based on private capital.  We offered amendment after amendment during the regulatory reform conference to end the GSE bailouts and to wind down Fannie Mae and Freddie Mac.  The Democrats rejected every one.

"The Democrats have offered nothing.  They have done nothing.  And they seem content to do nothing.  ‘Progress' hearings and planning conferences are not enough.  Putting aside the human costs of 10 percent unemployment and 30 percent home price depreciation, the bailouts of Fannie Mae and Freddie Mac have cost taxpayers more than $150 billion.  And it looks like hundreds of billions of dollars in additional losses are coming.

"Mr. Chairman, instead of continuing the strategy of ‘slow-walking' and postponing hard decisions, it is time for our leaders to take real action to end these bailouts.   The Democrats on this committee have had two years to act, and now Chairman Frank is claiming that talks of ending this congressional session a week earlier than scheduled will prevent any opportunity for legislative action to address Fannie and Freddie.  This is yet another ridiculous excuse for delaying reform, which is why I again call on the Chairman to hold a legislative hearing on Representative Hensarling's GSE bill and act quickly to protect the taxpayers.

"Without leadership, this problem cannot be solved.  Republicans are ready to lead."    

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