So let me make it clear, I am a strong supporter of the role that Fannie Mae and Freddie Mac play in housing, but nobody who invests in them should come looking to me for a nickel–nor anybody else in the Federal Government. And as I said, it is a self-fulfilling prophecy by some people. I do not believe that we have any such obligation. Some of the critics of Fannie Mae and Freddie Mac say that the problem is that the Federal Government is obligated to bail out people who might lose money in connection with them. I must say we have an interesting example of self-fulfilling prophecy. I do not think at this point there is a problem with a threat to the Treasury. We have recently had an accounting problem with Freddie Mac that has led to people being dismissed, as appears to be appropriate. That is, in my view, the two government sponsored enterprises we are talking about here, Fannie Mae and Freddie Mac, are not in a crisis. I want to begin by saying that I am glad to consider the legislation, but I do not think we are facing any kind of a crisis. Here’s an excerpt of his opening statement: See Congressman Barney Frank’s opening statement, which begins at 4:40.
Hearing from September 2003 on an administration proposal to alter the regulation of GSEs like Fannie Mae and Freddie Mac.