Sam
Johnson blasts bogus housing bill that soaks taxpayers: “The
lack of accountability and responsibility is astounding”
July
23, 2008
Today
U.S. Congressman Sam Johnson (3rd Dist.-Texas) ripped the Democrat
so-called housing bill that would force taxpayers to pay for a
$300 billion government bailout of the industry and a blank check
for Fannie Mae and Freddie Mac.
Remarks
as prepared for delivery:
“Congress
is trying to keep the housing market afloat and is working on
an unbridled government expansion of the Federal Housing Administration
to do it.
“I
am all for finding common-sense housing relief for those in trouble
-- but we need to hold hearings and take a closer look at this
proposal and the ramifications. Just because the housing market
has tumbled doesn’t mean we should capriciously finance
a big fat government bailout.
“Some
in Congress want the FHA to insure about $300 billion dollars
worth of risky mortgages – and they want the taxpayers to
be held responsible when homeowners default on their loan. That
makes no sense.
“The
Senate sent us a proposal to pay for the FHA expansion using a
“tax” on mortgage finance companies Fannie Mae and
Freddie Mac. Unfortunately, Fannie and Freddie are in trouble
and now are looking for a bailout from Congress.
“Why
should taxpayers foot the bill to prop up those former giants
when the company CEOs rake in a bundle – and continue to
do so? As one person said, it’s privatized profits and socialized
risk.
“Apparently,
Daniel Mudd, the CEO of Fannie Mae, received $11.6 million in
salary, stock and other compensation for 2007.
“Richard
Syron, CEO of Freddie Mac, took home about $18.3 million last
year. On top of his salary, stock options and a $3.45 million
bonus, Freddie Mac paid for a number of other perks for Syron,
such as a car and driver, a home security system, travel costs
for his wife, even $100,000 to pay his lawyer to negotiate his
employment contract with the bank.
“Everyone
knows I’m a strong supporter of freedom and free enterprise
but this is ridiculous. The lack of accountability and responsibility
is astounding.
“I
will not support a bailout for speculators and a package that
does little to help to real homeowners struggling to pay their
mortgages on time.
“I
do not believe we should ask people who rent homes or apartments
and all the people who reasonably and responsibly saved for a
home to foot the bill for all of the people who are in foreclosure.
That’s not right.
“We
should have empathy – but we must not write a blank check.”
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