Congress Urged to Pass Bill to Protect Taxpayers from Another Fannie Mae and Freddie Mac Bailout
DSnews - August 28, 2015 - September 1, 2015
By Brian Honea
The Competitive Enterprise Institute (CEI) and 14 other organizations have written an open letter to the U.S. House of Representatives and the U.S. Senate urging them to pass legislation that would provide a cushion to prevent another taxpayer bailout of Fannie Mae and Freddie Mac.
The organizations, representing “hundreds of hardworking Americans fed up with government spending and overreach,” encouraged members of Congress to quickly pass H.R. 1673, known as the Enterprise Secondary Reserve Taxpayer Protection and Government Accountability Act of 2015 was introduced by Rep. Marsha Blackburn (R-Tennessee) in March. This bill would create a reserve fund from the GSE profits from which Fannie Mae and Freddie Mac could draw if necessary rather than depend on the Department of Treasury (taxpayers) for another bailout similar to the $187.5 billion resuscitation they received in 2008.