U.S. Senator Judd Gregg (R-NH), ranking member of the Senate Budget Committee and a member of the Senate Banking Committee, today issued the following statement on the Federal Housing Finance Agency's most recent projections which forecast that Fannie Mae and Freddie Mac will need up to an additional $215 billion in federal aid.
"As of August, the U.S. Treasury Department had already spent $150 billion in hard earned tax dollars bailing out Fannie Mae and Freddie Mac. Sadly, that is just the beginning. Today's news that Fannie Mae and Freddie Mac may need double the original estimate of taxpayer assistance to meet their financial obligations illustrates the extent to which these zombie institutions are out of control.
"Despite their leading role in financial regulatory reform, Congressional Democrats refused to include any meaningful reform of Fannie and Freddie. They refused to even accept a simple amendment that I offered with Senators Shelby and McCain to at least bring these institutions into the light, and let taxpayers know how much they were on the hook.
"At a time when our debt rings in at $13.6 trillion and unemployment is stuck at nearly 10%, we cannot afford to keep bailing out bad policies. We must correct our fiscal course before it's too late for our children and grandchildren."