Financial Services Committee - 9-9-09, Bachus Criticizes Democrat’s Plan To Add Cram Down Proposal In Financial Regulatory Reform

Republican Plan To End The Bailout Of Fannie Mae and Freddie Mac

View the plan here

9-9-09, Bachus Criticizes Democrat’s Plan To Add Cram Down Proposal In Financial Regulatory Reform

September 9, 2009

-Today, Ranking Member Spencer Bachus, the top Republican on the Financial Services Committee, criticized to include mortgage cram down in financial regulatory reform legislation.

Ranking Member Bachus said: "I was troubled by Chairman Frank's announcement yesterday that he intends to include bankruptcy cram-down in his broader package of regulatory reforms. Bankruptcy cram-down - which was rejected by the Senate earlier this year - would severely undermine recent measures taken to unfreeze credit, and would impede our housing recovery by adding uncertainty to the market and increasing mortgage costs for the vast majority of Americans."

NOTE: Chairman Frank's plan contradicts this statement he gave to a reporter after the Senate failed to pass cram down legislation: "Excuse me, what planet were you on last week? The vote was 45 to 51. Why would you ask that? Do I think there's a likelihood we could overturn 45-51? No. I wish it weren't the case."