Rep Cmte Financial Services

Bachus: Administration Paying Lip Service to Fannie, Freddie Reform While Committee Republicans Have Offered Concrete Legislative Proposals


- House Financial Services Committee Ranking Member Spencer Bachus today urged Treasury Secretary Timothy Geithner and the Democrat majority to act quickly on a meaningful plan to phase out taxpayer support for Fannie Mae and Freddie Mac and restore long-term stability and private capital to the housing finance market.

"The collapse of the GSEs in the summer of 2008 helped precipitate the financial meltdown that followed in September.  Attempting to prevent another destabilizing financial shock without recognizing and addressing the GSEs is a failure to come to grips with reality,"  Bachus said in advance of a Financial Services Committee hearing today on the future of housing finance with Geithner as the main witness.  "The Administration and committee Democrats are paying lip service while Republicans have offered concrete proposals for restructuring how we will address housing finance in the future and avoid the bottomless bailout of the GSEs."

Last week, Bachus and other Committee Republicans were joined by Republican Leader John Boehner and Republican Whip Eric Cantor in releasing a set a principles they believe should be part of immediate legislative efforts to address the future of the two Government Sponsored Enterprises (GSEs), including phasing out the operations of Fannie Mae and Freddie Mac within four years in an effort to restore long-term stability and private capital to the housing finance market.

Financial Services Committee Republican-sponsored legislation includes:

Click here to view the full list of the Republican goals and principles and here to view the Republican regulatory reform plan.