Yesterday, in a letter addressed to Edolphus Towns (D-NY), the Chairman of the House Committee on Oversight and Government Reform, and Dennis Kucinich (D-OH), the Chairman of the Subcommittee on Domestic Policy, Congressmen Darrell Issa (R-CA) and Jim Jordan (R-OH), the ranking members of the aforementioned committees, requested a public hearing on the Obama Administration’s plans for Fannie Mae and Freddie Mac.
In the letter, Issa and Jordan stressed their disapproval of the recent actions taken by the Administration with respect to Fannie Mae and Freddie Mac. Specifically, the Congressmen criticized (i) the extension of “an unlimited bailout guarantee for the next three years,” (ii) the Administration’s “[reversal of] its decision to require Fannie and Freddie to shrink their investment portfolio of mortgage assets,” (iii) “the Administration’s announcement of lucrative, cash-heavy compensation packages for Fannie and Freddie executives” and (iv) “the Administration’s continued failure to deliver a plan to unwind its ever-growing commitment to Fannie and Freddie.”
The letter follows Treasury Secretary Geithner’s recent testimony that the Administration does not expect to propose reforms for Fannie Mae and Freddie Mac until 2011. According to Issa and Jordan, “[a] public hearing is a necessary step in continuing the Committee’s oversight of government involvement in the financial sector.”