Washington, D.C. – Congressman David Schweikert (R-AZ), Vice Chairman of the House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, is the lead sponsor of legislation prohibiting Fannie Mae and Freddie Mac from engaging in any new activities or businesses:
“This legislation cuts to the heart of the reckless bailout culture Washington has developed during past decades. The ‘Engaging in New Activities’ bill will put restrictions on where GSEs can invest their money and engage in new lines of business.
“This will protect American taxpayers from future failed bailouts, unsuccessful government programs, and wasteful spending. It is of utmost importance that we make these cuts to get our fiscal house in order. We have no choice.”
Schweikert’s bill prohibits Fannie and Freddie from engaging in any new activities or businesses. This bill is only part of the first of three phases that House Republicans plan to unveil to responsibly unwind the biggest bailout recipient in U.S. history.
Currently, FHFA prevents the entities from engaging in new activities and we want to ensure it stays that way by codifying that current practice. This will prevent taxpayers from taking on additional risk and allowing the GSE’s to spread into other areas.