May 11, 2010

WASHINGTON - Financial Services Committee Ranking Member Spencer Bachus today said the Senate failed taxpayers once again by killing the only amendment that would have addressed bipartisan concerns on the future of housing finance and reforming Fannie Mae and Freddie Mac.  Senator McCain's amendment was largely based on the comprehensive financial regulatory reform legislation introduced last year by House Republicans that will phase out taxpayer subsidies of Fannie Mae and Freddie Mac over a number of years and end the current model of privatized profits and socialized losses.

"Fannie and Freddie were one of the root causes of the financial crisis, and have received the largest taxpayer bailout of them all.  The McCain amendment is one of the strongest offerings we've seen for real reform, and the Democrats just sweep it under the rug like they have for two years.

"And what do the Senate Democrats come back with?  What can only be described as a legislative insult to the taxpayers - calls for another study.  It's been nearly two years since the government took over Fannie and Freddie and despite repeated assertions that something would be done, this is the best they can come up with?  After a $145 billion bailout to date, including $19 billion this week, the American people expect more than another study.  It's pathetic, and the taxpayers deserve better."

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

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