Baker Statement on Fannie Settlement Distributed Through the Fair Fund
U.S. Rep. Richard Baker, R-Baton Rouge, issued the following statement today on news that a $357 million settlement will be distributed by the SEC to injured Fannie Mae investors using the Fair Fund, a program created by Baker in the 2002 Sarbanes-Oxley Act that gave the SEC the authority to return penalties to shareholders impacted by corporate wrongdoing:
"The substantial fraud committed by Fannie Mae was a violation of the company's public mission that unsettled housing markets and, of course, harmed many investors who deserve recompense. That Fannie's wrongdoing escaped notice for so long is a continuing testament to the need then and the overwhelming need now for regulatory reform of the housing GSEs, and the House should act expeditiously on the GSE bill. Also, while I am proud that the Fair Fund has returned millions in compensation to wronged investors instead of enriching the Federal Treasury, we need to do more to help the Fair Fund work even better, which I hope we can accomplish through bipartisan legislation."