Fannie and Freddie Bailout Proposal
As a member of the Financial Services Committee, I have requested that the administration’s proposals to prop up the Government Sponsored Entities (GSE), Fannie Mae and Freddie Mac receive hearings and full deliberation before a floor vote.
Ensuring a functioning mortgage market and sound economy are important obligations. Protecting taxpayers from liability and huge tax hikes, however, are also essential responsibilities. The administration’s desire to calm financial markets is appreciated, yet it is important that Congress also act calmly.
The legislative requests from the Treasury department potentially put taxpayers at huge financial risk, without assurances that we will not find ourselves in this undesirable position again. While key stakeholders maintain that Fannie and Freddie are adequately capitalized at the current time, it is in the best interest of the American people that the administration’s requests be considered deliberately.
These are extraordinary steps that would set a substantial and lasting precedent for the role our government plays in private markets. In one swift motion, this action would reverse decades of stated federal policy that the U.S. government is not responsible for bailing out Fannie and Freddie.
In the mean time, it is essential that we pass long overdue reform of the regulator for these companies. We have sought for years that these two entities have stronger oversight and portfolio standards. I look forward to working in a bipartisan manner to provide stronger oversight of Fannie and Freddie and ensure that the administration’s requests receive proper and responsible consideration.
| Posted by Congressman Tom Price (GA - 06) (07-15-2008, 04:09 PM) filed under HRPC Member |
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