Republican lawmakers begin assault on Fannie Mae and Freddie Mac

Republican lawmakers on Capitol Hill are planning to hold a hearing on February 9 to begin tackling reform of government sponsored enterprises (GSE) like mortgage giants Fannie Mae and Freddie Mac. The hearing will be the first in a long series of investigations by Republicans to fix what is viewed as one of the main causes of the 2008 financial crisis.

The first hearing will be held by the Financial Services subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises. The focus of the hearing and the ones that follow it will be stopping taxpayer losses on housing in the short term, preventing future bailouts and removing government from the housing markets all together.

Republican Rep. Spencer Bachus of Alabama, chairman of the Financial Services Committee, said in a statement announcing the hearings, “The Committee will be busy this year addressing the issues of concern to Americans: jobs, economic activity, Fannie and Freddie reform, and implementation of Dodd-Frank.”

“We will work to ensure that taxpayers are protected,” he added.

Reform of Fannie Mae and Freddie Mac is shaping up to be a primary area of concern for the GOP as Republican lawmakers figure out how to address the two financial institutions that were left out of the Dodd-Frank Financial Reform and Consumer Protection Act that was passed last summer.

But Republicans are eying the financial overhaul bill as well.

The announcement of the hearings also comes on the heels of a letter Bachus and Republican Rep. Randy Neugebauer of Texas, chairman of the Financial Services subcommittee on Oversight and Investigations, sent to nine federal agencies asking them to provide information on how much implementing the financial reform law will cost.

Those nine agencies — including the Treasury Department, Federal Reserve, Securities and Exchange Commission, and the Federal Trade Commission — were all charged with producing rules and regulations to implement the law.

The letter points out that the Dodd-Frank Act requires 11 agencies to create, among other things, 243 rules of compliance, 59 studies, and 22 new annual reports.

“It is our responsibility to ensure that mandates are not overly burdensome or wasteful of taxpayer,” said the letter.

  • baal

    We need to cut all taxpayer lifelines to these Democrat cash machines.

  • Jeugenen

    If criminal charges and severe sentences are not inflicted on this economically ruinous banker’s mafia and the members of Congress they bribed, this investigation is merely a sham; and the bankers are still in political control over the American government. And, if these bankers are not finally shackled with nationalization and legislative restrictions, they will certainly continue to bring economic ruin to future generations of Americans.

  • http://www.facebook.com/people/Trish-Anderson/100000510771279 Trish Anderson

    This debacle is what caused all of the financial melt downs. I want everything brought out in the open. All parties should be held and PUNISHED for their part in this outrageous mess!

  • Bronco46

    Dodd and Franks should drummed out of the congress for what they did to the mortgage system of this country. Instead they keep getting re-elected; by constituents who either don’t know, or don’t care about their actions. Their part in this disaster needs to brought to the media and it needs to be talked about in public forums.
    These men should not be able to enjoy their place in history by skating on their part in this.
    As to what can be done about what they did. I’m not sure much can be done except make sure these sad events
    cannot be repeated.