Sam Johnson blasts bogus housing bill that soaks taxpayers
“The lack of accountability and responsibility is astounding.”
Washington,
Jul 23 -
Today U.S. Congressman Sam Johnson (3rd Dist.-Texas) ripped the Democrat so-called housing bill that would force taxpayers to pay for a $300 billion government bailout of the industry and a blank check for Fannie Mae and Freddie Mac.
Remarks as prepared for delivery:
“Congress is trying to keep the housing market afloat and is working on an unbridled government expansion of the Federal Housing Administration to do it.
“I am all for finding common-sense housing relief for those in trouble -- but we need to hold hearings and take a closer look at this proposal and the ramifications. Just because the housing market has tumbled doesn’t mean we should capriciously finance a big fat government bailout.
“Some in Congress want the FHA to insure about $300 billion dollars worth of risky mortgages – and they want the taxpayers to be held responsible when homeowners default on their loan. That makes no sense.
“The Senate sent us a proposal to pay for the FHA expansion using a “tax” on mortgage finance companies Fannie Mae and Freddie Mac. Unfortunately, Fannie and Freddie are in trouble and now are looking for a bailout from Congress.
“Why should taxpayers foot the bill to prop up those former giants when the company CEOs rake in a bundle – and continue to do so? As one person said, it’s privatized profits and socialized risk.
“Apparently, Daniel Mudd, the CEO of Fannie Mae, received $11.6 million in salary, stock and other compensation for 2007.
“Richard Syron, CEO of Freddie Mac, took home about $18.3 million last year. On top of his salary, stock options and a $3.45 million bonus, Freddie Mac paid for a number of other perks for Syron, such as a car and driver, a home security system, travel costs for his wife, even $100,000 to pay his lawyer to negotiate his employment contract with the bank.
“Everyone knows I’m a strong supporter of freedom and free enterprise but this is ridiculous. The lack of accountability and responsibility is astounding.
“I will not support a bailout for speculators and a package that does little to help to real homeowners struggling to pay their mortgages on time.
“I do not believe we should ask people who rent homes or apartments and all the people who reasonably and responsibly saved for a home to foot the bill for all of the people who are in foreclosure. That’s not right.
“We should have empathy – but we must not write a blank check.”
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