Tuesday
Feb232010
House Republicans Want Freddie And Fannie To Be On The Books
Tuesday, February 23, 2010 at 1:25PM
By Laurel Brishel Prichard - University of New Mexico/Talk Radio News Service
A group of Republicans serving on the House Financial Services Committee have unveiled a bill that would force the Obama administration to add the total debt of Fannie Mae and Freddie Mac, a total of $1.6 trillion, to the current national debt figure.
“All roads have led to Freddie and Fannie in the current financial meltdown situation that we have been continuing to deal with. We have to level with the American people as to what’s going on,” said Rep. Michele Bachmann (R-Minn.) during a press conference on Tuesday.
To date, the administration has taken into account the $110.6 trillion in taxpayer dollars that has already been paid to the corporations, as well as $225 billion in mortgage bonds bought by the Treasury Department, but Republicans aren't satisfied.
“The Obama administration has been obscuring the cost of the government-sponsored enterprises by not including them in the budget...this is certainly what got Enron in trouble, it got WorldCom in trouble, and it got AIG in trouble,” said Rep. Spencer Bachus (R-Ala.).
Freddie Mac and Fannie Mae hold well over forty percent of past due mortgages in circulation currently. According to Bachus, the Treasury Department's Christmas Eve decision to give the GSE's a “blank check” will allow them to rely on taxpayer support until 2012.
The proposed bill would begin to take effect ninety days after being signed into law.
A group of Republicans serving on the House Financial Services Committee have unveiled a bill that would force the Obama administration to add the total debt of Fannie Mae and Freddie Mac, a total of $1.6 trillion, to the current national debt figure.
“All roads have led to Freddie and Fannie in the current financial meltdown situation that we have been continuing to deal with. We have to level with the American people as to what’s going on,” said Rep. Michele Bachmann (R-Minn.) during a press conference on Tuesday.
To date, the administration has taken into account the $110.6 trillion in taxpayer dollars that has already been paid to the corporations, as well as $225 billion in mortgage bonds bought by the Treasury Department, but Republicans aren't satisfied.
“The Obama administration has been obscuring the cost of the government-sponsored enterprises by not including them in the budget...this is certainly what got Enron in trouble, it got WorldCom in trouble, and it got AIG in trouble,” said Rep. Spencer Bachus (R-Ala.).
Freddie Mac and Fannie Mae hold well over forty percent of past due mortgages in circulation currently. According to Bachus, the Treasury Department's Christmas Eve decision to give the GSE's a “blank check” will allow them to rely on taxpayer support until 2012.
The proposed bill would begin to take effect ninety days after being signed into law.
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