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Bachus Statement on NYSE's Delisting of Fannie Mae and Freddie Mac


WASHINGTON, Jun 16 -

 

June 16, 2010

 

- Financial Services Committee Ranking Member Spencer Bachus today said Congress is long overdue in addressing reform of Fannie Mae and Freddie Mac, the two government-sponsored (and now operated) enterprises that fueled the financial crisis.  Earlier today, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac, now operating under a federal conservatorship, to delist their common and preferred stock from the New York Stock Exchange and any other national securities exchange. 

"This action clearly confirms what we've known since September 2008 - Fannie and Freddie are not real companies anymore.  They are taxpayer-funded, government-run institutions," Bachus said.  "If the Democrats continue to ignore the issue - like they have for years - Fannie Mae and Freddie Mac will not only indefinitely remain the central players in the U.S. mortgage market, but they will also linger as the nation's largest taxpayer liability.

"Last year, in a Christmas Eve raid on the Treasury, the Obama Administration approved astronomical salaries and bonuses in cash for the CEOs of the taxpayer-owned companies Fannie Mae and Freddie Mac.  The salary and bonus payments of $6 million are 15 times greater than what the President makes and 30 times more than a cabinet secretary."

House Republicans have repeatedly called on Democrats to address GSE reform in the financial regulatory reform package.  Instead, Democrats have punted the issue to after the November elections, leaving taxpayers on the hook for more than $145 billion and counting in funding.  To view a timetable showcasing the Democrats' inaction on the issue, click here

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