Press Releases

Bachus: How Many More Reasons Do The Democrats Need Before Acting On Fannie And Freddie?

WASHINGTON, July 21, 2010 -

- Financial Services Committee Ranking Member Spencer Bachus made the following statement regarding the quarterly report to Congress by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). The SIGTARP found that taxpayers stand behind $6 trillion of Fannie Mae and Freddie Mac's debt obligations. Additionally, the SIGTARP reported that Treasury's commitment to non-TARP programs, including the purchase of GSE-related assets, student loans, and the support of the IMF's bailout of Greece, substantially increased from $257.1 billion to $533.5 billion.

"It is absolutely irresponsible that with more than $6 trillion in taxpayer liability the Democrats continue to look the other way rather than tackle the need to end the bailout of Fannie Mae and Freddie Mac and reform the companies. Taxpayers deserve an exit strategy from Fannie and Freddie's bailout. 

"The Treasury's commitments to purchase GSE-related assets and support the IMF bailout of Greece accounted for an overwhelming increase in taxpayer exposure--further shifting all the risk from the private sector onto the taxpayer.

"In light of this SIGTARP report, it is disturbing that the President will sign into law the Democrats' permanent bailout bill that does nothing to address Fannie and Freddie or make Wall Street responsible for its risk-taking."

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