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Bachus: It Is Unacceptable That Treasury Still Has No Plan For Fannie, Freddie

WASHINGTON, Mar 23 -

- House Financial Services Committee Ranking Member Spencer Bachus made the following statement during a full Committee hearing on housing finance reform.

"Thank you, Chairman Frank, for holding this very important - and long overdue - hearing.

"It's unacceptable that, more than 18 months after the GSEs were placed in conservatorship, the Treasury Department still does not have a plan for Fannie and Freddie.  Without reform, the bailouts will not stop, the housing market will not find its footing, and the American economy will not recover.  But so far the response has been to pledge unlimited bailout aid and guarantee all the GSE debt, which has already cost the American taxpayers more than $127 billion.  

"The question posed is ‘what should the new system be able to do?'  The answer is simple:  protect taxpayers from further losses and bailouts in order to build a stable housing finance system based on private capital.   While the Administration and Congressional Democrats have remained silent, Republicans have introduced legislative measures to immediately address the failures and put forth real solutions. 

"Mr. Chairman, I hope today is the beginning of open dialogue between Congress and the Administration, and that you follow the leadership of House Republicans and phase out federal credit privileges and taxpayer support and guarantee of Fannie and Freddie."