House Republicans Want Freddie And Fannie To Be On The Books

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.

Frank And Others Less Than Interested In Financial Regulatory Reform

By Joseph Russell- Talk Radio News Service

House Financial Services Committee Chairman Rep. Barney Frank (D-Mass.) seemed to be a bit distracted Wednesday during the committee's testimony on financial regulatory reforms proposed by the Obama administration.

Frank read a newspaper, fell asleep, and then left early during testimony from Chairman Mary Schapiro of the Securities and Exchange Commission (SEC) and Chairman Gary Gensler of the Commodity Futures Trading Commission (CFTC).

Frank’s lack of attention highlighted the disapproval shared by Republicans on the committee that the Obama administration’s proposals do not address the specific needs of financial regulatory reform, and vastly expand the SEC’s power.

“Perhaps an even more fundamental question needs to be asked here,” said Rep. Scott Garrett (R-NJ). “Will standardized business be significantly related to the recent meltdown of our financial markets? And if not, why are we prescribing cure for a non-existing ailment.”

The Obama administration has proposed a broad spectrum of reforms that would expand the U.S. financial regulatory system. The administration’s plan calls for derivatives and hedge funds to be regulated, a stiffening of securities and futures regulation, and regulation of the credit rating agencies by the SEC. This committee meeting was the first of several that will examine these proposals.

Blunt (R-Mo.) returns to Washington to join GOP protest

The protesting House Republicans held another press conference calling for an immediate vote on their American Energy Act, despite Congress being out for a five-week vacation. House Minority Whip Roy Blunt (R-Mo.) returned from Missouri to participate in the protest. Blunt said it takes only five minutes for a representative in their home state to realize that the most important and urgent issue is the economy.

The Congressmen at the news conference posed with tire pressure gauges to mock Senator Barack Obama's (D-Ill.) new push for Americans to properly inflate their tires for better gas mileage. In contrast to that plan, Congressman Rob Bishop (R-Utah) said the Republicans' American Energy Act is a comprehensive bill that would not just drill for oil, but also reward people for conservation, fund renewable energy, and maintain traditional energy.

Congressman Scott Garrett (R-N.J.) said his office created a new e-mail address to handle the massive influx of complaints from citizens all around the country, PainAtthePump@mail.house.gov. Congresswoman Virginia Foxx (R-N.C.) said that Speaker Nancy Pelosi's (D-Calif.) attempt to "shut us up" the House Republicans has only energized them to continue their protest. Blunt said that although he is not sure there will be a vote soon, there will be one in November. He anticipates the gas crisis turning into a complete energy crisis in the next 90 days once the winter heating bills arrive at American houses. Garrett said that since Pelosi is unwilling to step up and lead on the energy issue, the Republicans are.