Wednesday, December 30, 2009
Dennis Kucinich to investigate Freddie & Fannie
And their continuing wild weekend with the Treasury. According to a press release from Rep. Kucinich, he will begin an investigation of the Treasury's $800 Billion Christmas present to the feckless mortgage duo.
As Chairman of the Domestic Policy Subcommittee of the Committee on Oversight and Government Reform, I'm announcing that the Subcommittee will launch an investigation into the Treasury Department's recent decision to lift the current $400-billion cap on combined federal assistance to Fannie Mae and Freddie Mac, opening the way for additional, unlimited funds through the end of 2012. This investigation will include the role played by Fannie Mae chief executive Michael J. Williams and Freddie Mac chief executive Charles E. Haldeman in the decision, if any, and will seek to ensure that the additional assistance is used for homeowners and not Wall Street.This could be a very productive investigation, most of the Democrats are also members of the Progressive Caucus, and the GOP members are a bunch of backbenchers.
Many questions remain unanswered regarding this move by the Treasury. Why suddenly remove the cap? Indications are that Freddie and Fannie, even as millions of Americans lose their homes, have used just $111 billion of the $400 billion previously available to them. Is lifting the cap on assistance a back-door TARP?
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