Kanjorski backs Fannie, Freddie move

WILKES-BARRE – U.S. Rep. Paul E. Kanjorski, chairman of the House Financial Services Subcommittee on capital markets, insurance and government sponsored enterprises, commented on the actions taken Sunday by the Treasury Department and the Federal Housing Finance Agency related to Fannie Mae and Freddie Mae:

“Fannie Mae and Freddie Mae are extremely important institutions in our nation’s housing finance system. In order to promote economic growth and better stabilize the economy, we must protect them so that we can protect homeowners, homebuyers, taxpayers and other regulated financial institutions,” said Kanjorski, D-Nanticoke.

“I support the actions taken today by Treasury Secretary (Henry) Paulson and Federal Housing Finance Agency Director (James) Lockhart.”

Kanjorski added that Congress should exercise its powers within the days and weeks ahead regarding the decisions, which provide for the upfront issuance of $1 billion of senior preferred stock at each of the enterprises.

“But these commitments could grow to as much as $100 billion at both Fannie Mae and Freddie Mae,” Kanjorski said.

Kanjorski suggested that in order to protect taxpayers, “we must hold hearings on these matters and we must closely monitor the actions of government officials.”

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