[Congressional Record (Bound Edition), Volume 151 (2005), Part 17]
[House]
[Pages 23077-23078]
[From the U.S. Government Publishing Office, www.gpo.gov]




                REGULATING GOVERNMENT-SPONSORED ENTITIES

  (Mr. GARRETT of New Jersey asked and was given permission to address 
the House for 1 minute.)
  Mr. GARRETT of New Jersey. Madam Speaker, I rise today to discuss an 
issue that may come before the floor of this House next week. It is the 
regulations of GSEs, Fannie Mae and Freddie Mac. These were 
institutions that were created by Congress with the main purpose of 
providing liquidity in

[[Page 23078]]

the mortgage market and also to provide affordable housing for lower 
income families.
  Unfortunately, over the years they have left their mark, and they 
have been plagued by multiple accounting scandals.
  I commend the chairmen, Chairmen Oxley and Baker, for what they are 
doing, drafting legislation to address it; but unfortunately the bill 
does not go far enough. The crux of the problem is that there is no 
limit to the size of their portfolio, their balance sheets, the amount 
of debt they have. Right now it is around $1.5 trillion, $1.7 trillion 
in debt on their financial sheets. A failure in the system would mean 
that the savings and loan scandals of a few years ago would pale in 
comparison.
  I will conclude by quoting Allen Greenspan who testified that without 
restrictions on the size of the GSE balance sheets, we put at risk our 
ability to preserve safe and sound financial markets in the United 
States. We must do more to regulate and rein in our GSEs.

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