“We will never have a full and complete understanding of the roots of this financial crisis without shedding light on Fannie Mae and Freddie Mac’s role in it, and Chairman Waxman’s refusal to hold hearings to examine their role says a lot about where the Democrats’ priorities lie. There is no debate that these government-sponsored enterprises share responsibility for the housing crisis that has preceded today’s market turmoil. Over the last decade, Republicans have consistently sought fundamental reform of Fannie Mae and Freddie Mac, but our efforts were blocked by Members on the other side of the aisle who said no reform was needed. At the very same time that Democrats claimed there was ‘no crisis’ at Fannie and Freddie, predatory subprime lending ran rampant under Franklin Raines’ watch, laying the foundation for the economic troubles that are playing out today.
“Congress has the responsibility to find out why this was the case – and what we must do to ensure these sorts of activities at Fannie and Freddie never happen again. Yet Chairman Waxman has flatly refused numerous requests by Republicans to hold even a single hearing on Fannie Mae and Freddie Mac’s role in the financial crisis that is having an impact on families, seniors, small businesses, and every single taxpayer in America. Let’s be clear: Congress must get to the bottom of why executives at Fannie and Freddie ran amok, and the request by Committee Republicans to call on Franklin Raines to testify as part of these hearings must be granted. Chairman Waxman’s refusal to shed light on the true roots of the problem solely to shield his fellow Democrats politically is irresponsible and cheats the American people of key facts that could help all of us learn how we got here – and what we must do to make certain this situation never repeats itself.”
NOTE: Oversight & Government Reform Committee Republicans today released “Examining the Causes of the Credit Crisis of 2008,” an analysis of the roots of today’s market turmoil, including a review of Fannie Mae and Freddie Mac’s contributions to the crisis. The report is available here.