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Bachus: Tens of Thousands of Americans Want Immediate Reform of Fannie Mae and Freddie Mac, Why Won't Democrats Act?

WASHINGTON, June 2, 2010 -

- Financial Services Committee Ranking Member Spencer Bachus today released the following statement as the YouCut program announced that reforming Fannie and Freddie is the current leader with 45 percent of the votes cast this week.

"It's a telling sign of the failures of financial reform when reforming Fannie Mae and Freddie Mac is pulling in 45 percent of votes online but not the support of congressional Democrats," Bachus said.  "With more than 650,000 votes cast and $145 billion spent and counting, one would think Democrats would finally take the hint and turn off the spigot that's running unlimited taxpayer funds."

YouCut is a project launched by the House Republican Economic Recovery Working group, led by Whip Eric Cantor.  The initiative was designed to empower citizens to vote on spending cuts they would like to see the House enact.  Participants can vote online and via text message.  Currently in the lead, the entry for reforming Fannie Mae and Freddie Mac states:

"So far, the bailout of Fannie Mae and Freddie Mac has cost taxpayers $145 billion.  That amount grows every quarter and, so long as the Democrats have their way, there is no end in sight. The Congressional Budget Office has estimated that absent reform, costs to taxpayer will continue to grow. Taking action to reform these companies now (as opposed to delaying action as some have proposed) by ending their government conservatorship, shrinking their portfolios, establishing minimum capital standards, and bringing transparency to taxpayer exposure could generate savings of up to an estimated $30 billion."

"The financial regulatory reform bills that have passed the House and Senate do nothing to change the way Fannie Mae and Freddie Mac operate or to protect taxpayers from hundreds of billions of dollars in projected losses," Bachus continued.  "Reform is needed now to address the root cause of the financial crisis.  The American people see it, House and Senate Republicans see it, and even the experts see it.  Why won't the Democrats act?"

To view the timeline of Democrats' inaction on Fannie and Freddie reform, click here


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