Policy: Democrats to Reform the Financial Services Industry—what Could Possibly Go Wrong?

The House Republican Conference policy shop has been hard at work behind the scenes. In our latest paper, we take a break from health care to focus on the economy. Read an excerpt of the study and get the rest at the link below:

As AEI's Peter Wallison noted, "By the end of 2008, Fannie and Freddie held or guaranteed approximately 10 million subprime and Alt-A mortgages and mortgage-backed securities...These are now defaulting at unprecedented rates...Since 2008, under government control, the two agencies have continued to buy dicey mortgages..."  To date, the taxpayers have lost $126.9 billion bailing out the two firms and the Democrats continue to pretend not to notice.

Get all the details here.