Johanns Urges Hearing On Blank Check To Fannie Mae And Freddie Mac

Press Release

Senator Mike Johanns today urged Senator Chris Dodd, Chairman of the Committee on Banking, Housing, and Urban Affairs to hold a hearing to review the Department of Treasury's Christmas Eve decision to essentially write a blank check with taxpayer money to mortgage giants Fannie Mae and Freddie Mac.

"These mortgage giants played a significant role in getting us into the housing crisis in the first place. In return, American taxpayers paid out hundreds of billions of dollars to bail them out," Johanns said. "Now, the Obama Administration gives them a blank check? Only in Washington could this be done without being run out of town. These folks have some explaining to do and a hearing would be a good start," Johanns added.

Background Information
* On December 24, 2009, Treasury removed the statutory caps regarding how much taxpayer money it could pour into Fannie Mae and Freddie Mac. These caps were previously set at $200 billion each.
* The government currently owns 79.9 percent of each mortgage company.
* Taxpayers are on the hook for over $100 billion in bailouts to the two companies specifically and more than $2 trillion in total for the overall effort to help stabilize the economy.

Johanns joined 6 other Senators in signing this letter to Chairman Dodd (D-CT). A copy of the letter can be found below.

Source