Administration Is Obscuring Cost of Fannie, Freddie's Blank Check

This story appeared in Bank Digest.

During a press conference to announce introduction of the Accurate Accounting of Fannie Mae and Freddie Mac Act, House Financial Services Committee Ranking Member Spencer Bachus, R-Ala., commented that federal budget discussions should include operating expenses associated with government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. Bachus cosponsored the Act with Rep. Scott Garrett, R-N.J., asserting that it would bring transparency, accountability and oversight to Fannie Mae and Freddie Mac. “Taxpayers have already contributed over $110 billion to the bailout of these GSEs, and they are on the hook for hundreds of billions more. Taxpayers now own at least 80 percent of the two enterprises and have explicitly guaranteed over $5 trillion in Fannie and Freddie debt, yet their operations are not included in the federal budget,” said Bachus.