Washington, D.C. House Republican Conference Chairman Jeb Hensarling (R-TX) and House Financial Services Committee Chairman Spencer Bachus (R-AL) joined U.S. Senators John McCain (R-AZ) and Orrin Hatch (R-UT) today for a press conference to discuss the Government Sponsored Enterprise (GSE) Bailout Elimination and Taxpayer Protection Act. This legislation, introduced by Hensarling in the House and McCain in the Senate, will end the taxpayer-funded bailouts of Fannie Mae and Freddie Mac and put these two companies on a path towards privatization.
Excerpts of Chairman Hensarling’s Remarks:
“I believe when the history is written, Fannie and Freddie will prove to be the mother of all taxpayer bailouts. This system that privatized profits and socialized losses must come to an end. Now, we understand that Fannie and Freddie and FHA control over 90 percent of the market. That’s why this bill has an orderly phase down over a 5 year period to invite in market competition.
“We look at international markets and we see many OECD nations that have either comparable or higher rates of ownership than the USA, and yet they didn’t experience anything remotely resembling our foreclosure crisis and they have no government sponsored enterprises. Now you can find, I believe, nothing in theory, nothing in history, nothing in practice that compels this.
“The sooner that we put Fannie and Freddie on a pathway to ultimately invite in a competitive market, our economy will be better and more jobs will be created. There is no greater program for home ownership than a job. I want to thank Spencer Bachus for his personal leadership in working with me on this legislation and encouraging me to reintroduce it, and he and I are the original cosponsors. I hope and believe - now that the White House has put out its papers- that maybe, maybe there’s an opportunity to get some legislation here and put this sad chapter behind us.”