U.S. Sen. Mike Johanns (R-Neb.) today expressed disappointment with the Obama Administration's continued foot-dragging on the reform of government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac. The Administration released a report today as "a plan for fundamental reform -- to wind down the GSEs" yet provides no long-term plan of action, instead offering only a menu of suggested options.
"Tax dollars have been funneled to prop up Fannie and Freddie ever since the GSEs played a central role in the demise of the housing market, and the Administration's failure to step forward with a concrete plan is disappointing," Johanns said. "I've supported efforts to restructure Fannie and Freddie, all of which were voted down, and today's report only ensures further delay. It's time to say, 'enough is enough,' and I look forward to working with my colleagues on the Banking Committee to wind down Fannie and Freddie and relieve taxpayers of this burden."
Since the federal government took control of Fannie and Freddie in 2008, more than $150 billion and counting in tax dollars have been used to keep them running. The report released by the Obama Administration suggests three long-term options to address Fannie and Freddie, which include varying degrees of government involvement and taxpayer support.
Last May, Johanns supported an amendment to the financial regulatory reform bill that would have initiated the eventual end of Fannie and Freddie and preserved further tax dollars from buttressing the GSEs.