Johanns Lauds Proposal to Close Fannie & Freddie

White House Plan follows Johanns-sponsored bill

OMAHA, Neb. – U.S. Sen. Mike Johanns (R-Neb.) today released the following statement regarding President Obama’s proposal to wind down government-sponsored mortgage enterprises Fannie Mae and Freddie Mac—a plan largely mirroring bipartisan legislation Johanns cosponsored with Sens. Bob Corker (R-Tenn.), Jon Tester (D-Mont.) and Mark Warner (D-Va.):
“I’m pleased the President recognizes the need for fundamental restructuring of our mortgage finance industry, and that he agrees with our bipartisan plan in the Senate to take taxpayers off the hook for future bailouts,” Johanns said. “It is important that we ensure taxpayers are repaid for the $188 billion in bailouts of the industry, and that we act in a timely fashion to prevent such bailouts in the future. I hope this is more than a talking point for the President, and he commits to protecting taxpayers by winding down Fannie and Freddie in five years.”
The Senate’s bipartisan Housing Finance Reform and Taxpayer Protection Act would phase out Fannie Mae and Freddie Mac in five years, replacing them with a privately capitalized system that preserves market liquidity and protects taxpayers in the event of future economic downturns.