Media Reports Raise Serious Questions About America’s Biggest Bailed Out Failed Company
WASHINGTON, D.C. – (RealEstateRama) — House Financial Services Committee Chairman Jeb Hensarling released the following statement following media reports that high ranking Fannie Mae employees have been intentionally violating their government prohibition on lobbying through a series of secret meetings to remove the failed mortgage giant from federal oversight.
“When Fannie Mae went broke, it came begging taxpayers for what has turned out to be $120.836 billion in federal bailouts so far. As a condition of receiving those funds, Fannie Mae was explicitlyprohibited from engaging in “all political activities—including all lobbying,” a prohibition which it is now being reported Fannie has deliberately violated.
“If true, this violation is more than an outrage, it is a direct affront on taxpayers and the current structure of the federally-back conservatorship that has allowed Fannie Mae to operate for the last decade. It is a slap in the face of taxpayers that Fannie Mae thinks it can take their money and blatantly ignore the rules that came with it. The American people deserve better. That’s why the Committee will be launching a full investigation into these allegations to identify those responsible and hold them accountable to taxpayers.
“But we can’t stop there. In order to truly solve the problem of the broken GSE hybrid finance model, Congress must enact sustainable housing finance reform as soon as possible and once and for all get rid of any backdoor attempts to resurrect the old, failed ways of the past.”