GOP to focus on cause of financial crisis
Republican leaders on Capitol Hill say ending the federal bailout of insolvent mortgage buyers Fannie Mae and Freddie Mac will be a major goal for the next Congress and criticize Democrats for failing to fix the pair of institutions that had central roles in the recent financial and housing crises.And they got one that was compounded by the Democrats response of spending even more money and creating massive public debt, turning the government into a sub prime borrower while ignoring the sector responsible for the debacle and punishing the victims on Wall Street.
House Republicans have rebuked Democrats for not including the troubled lenders in the landmark Wall Street reform bill passed by Congress and signed into law by President Obama in July, saying they ignored a central problem that led to the housing market collapse, and are prepared to take up the topic when they take control in of the chamber in January.
"Over the last few years, Americans have seen up close the fallout from policies that encourage overexposure and the reckless overextension of debt," said Rep. Tom Price of Georgia, chairman of the Republican Study Committee, a group of conservative House Republicans. "By using Fannie Mae and Freddie Mac to manipulate the housing market, Washington created a recipe for economic disaster."