This is Representative Scott Garrett's statement on the bailout of Fannie Mae and Freddie Mac:
"While hindsight is 20/20, as we make plans to move forward, it's important to recognize the system under which these GSEs failed. The Congress has long provided ambiguous and conflicting direction to the GSEs and the investing public. On one hand, the GSEs were expected to support affordable home ownership for low-to-moderate-income Americans. On the other hand, it was their fiduciary duty to maximize shareholder return. Without a doubt, these conflicting obligations helped to createthe mess taxpayers are currently facing.
"Since my election to Congress, I have consistently fought to reduce theexposure to GSE failure and believe we must take aggressive steps to prevent additional government bailouts in the future. Going forward, we must implement major changes to limit the size and scope of the GSEs and ensure that free markets are given the opportunity to work on behalf of all Americans.
"In addition, Congress must provide leadership in this time of economic crisis. Several of my colleagues and I called for hearings on the Bear Stearns bailout in March. These hearings did not take place until July of this year. As the Fannie and Freddie bailout proceeds, vigorous oversight is needed so that American taxpayers understand how their government is spending their tax dollars."