May 10, 2010

WASHINGTON - Financial Services Committee Ranking Member Spencer Bachus today called on the Senate to quit ignoring the "elephant in the room" as Fannie Mae, one of the Government Sponsored Enterprises that has been bailed out with billions of taxpayer dollars, reported a $13 billion loss in the first quarter and requested $8.4 billion in more government funding. 

"You can't solve the financial crisis without addressing what caused it in the first place, and you can't fix the problem while continuing to bleed taxpayers dry to prop up failed programs and policies," Bachus said. 

Today's request from Fannie Mae comes on the heels of Freddie Mac reporting $6.7 billion in losses and requesting $10.6 billion in taxpayer dollars.  It also follows comments from Senator Mark Warner this morning on CNBC in which he acknowledged that "it's a fair claim to make that we haven't done enough to fully address Fannie and Freddie, it is the big elephant in the room that hasn't been addressed."

"With the Democrats purposely looking the other way, Fannie and Freddie continue to lose billions of dollars and rely on unlimited bailouts.  The GSEs have now cost taxpayers $145 billion, with no end or plan of action in sight," Bachus said.  "House Republicans have already introduced legislation to wind down the operations of the two GSEs, and support the efforts of Senate Republicans to amend the Senate bill to do the same.  Now it's up to the Administration and Senate Democrats to follow Republicans' lead and address Fannie and Freddie reform."

For more information on the House Republican plan for reform of Fannie and Freddie, click here. 

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