Rep Cmte Financial Services

Bachus Says End The Bailouts, Reform Fannie And Freddie



Democrat Proposals Create A Command and Control Regime
April 21, 2010

-Financial Services Committee Ranking Member Spencer Bachus today made the following remarks on the Democrats' bailout bill during a House Republican leadership press conference:

"There are three things in the bill that are different.  There are a lot of things that are alike.  We both address derivatives, more transparency, we all close gaps in the regulation. 

"But the three differences are this: the first difference is they have a command and control regime, just like in health care, just like in cap and trade.  They would make decisions for the American people and for businesses that those people make for themselves.  The government would manage what traditionally in this country the family, or the business, or the individual would manage. 

"The second big difference: they would continue to manage the permanent bailout authority long after the American people have rejected bailouts.  They're arguing among themselves, as Mr. Pence said.  Do we have a before-the-fact bailout fund or an after-the-fact bailout fund, or no bailout fund at all?  But the one thing they do, they give the FDIC a trillion dollar authority to bailout creditors and counterparties just like they did in AIG. 

"The third difference, a very important difference that even Democratic economists across the nation said you have to have in the bill, you have to reform Fannie and Freddie.  You have to have a resolution of that.  If you don't, you'll have another $127 billion or $300 billion bailout of them.  They have an unlimited line of credit drawn on the American people."