US Rep Calls Hearing To Mull Future Role Of Fannie, Freddie
May 28 2009 - 12:40PM
Dow Jones News
U.S. Rep. Paul Kanjorski, D-Pa., Thursday called a hearing for
next week to assess the current state of Fannie Mae (FNM) and
Freddie Mac (FRE) and to begin debate over how they will be
structured in the future.
Kanjorski, the chairman of the House Financial Services
subcommittee on capital markets, in a statement said the
government-controlled mortgage finance companies were "extremely
important to institutions in our nation's housing finance
system."
He said lawmakers must ensure that taxpayer funds allocated to
prop up the companies are being used effectively. Kanjorski also
said Congress should begin the "long-term debate" about how the
companies will be structured after the economy is stabilized.
The government seized Fannie and Freddie last September after
soaring losses at the companies had fueled concerns they would
collapse. The Treasury Department has since pumped a combined $85
billion into the companies to keep them solvent.
The hearing is scheduled for June 3. -Jessica Holzer, Dow Jones
Newswires; 202-862-9228; jessica.holzer@dowjones.com