Press Release

Hensarling Opening Statement At Geithner Hearing
More bailouts coming if we repeat the mistakes of Fannie Mae and Freddie Mac

WASHINGTON, DC — “I find it somewhat curious that we are having a hearing on systemic regulation and nowhere do I see the Director of FHFA, the regulator of Fannie Mae and Freddie Mac.  The same Fannie and Freddie that were compelled to buy the lion’s share of poorly underwritten loans in this nation.  The same Fannie and Freddie that have now cost the taxpayer over $1 trillion.”

“The Administration has now submitted to us legislation to regulate pawn shops and grocery stores, but NO legislation dealing with the greatest systemic risk within the system, Fannie and Freddie.”

“The bill we are considering today will simply institutionalize too big to fail, paving the way for more Fannies and Freddies, and perpetual taxpayer bailouts.”

“According to the Wall Street Journal, the Administration is not done with taxpayer-funded bailouts, as apparently GMAC is now in for their third multi-billion dollar bailout. 

To borrow from the title of a song from The Commodores, ‘Once, twice, three times a bailout.'  Enough is enough.”
 

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