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Sen. David Vitter, (R-La.), on his efforts to limit funds for the mortgage lenders and increase competition in market.
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Very much -- -- in our next guest says it is time to get taxpayers off the hook from these monstrosity is altogether senator David -- Joins us now is how we do it senator.
Well David we need a plan to get Fannie and Freddie out of the market place right now they constitute 96%.
Of the market of the home mortgages and the problem is there's no plan and fight to change that.
And read for -- private players back into the market what do you have a -- concerned about I'm concerned about these bonuses but.
The taxpayer liability that's a result of -- dominance.
A Fannie and Freddie is a whole lot bigger problem in terms of dollars.
Well senator a lot of people been thinking about how to have how to cut the anchor chain with Fannie and Freddie for years and haven't come up with a good solution have you.
Yeah there proposed.
-- in the senate banking committee on the Republicans on the problem is.
Senate Democrats for the most part -- -- across tracks know all last year when we're debating Dodd-Frank.
A lot of -- kept asking where's the section of this bill.
About Fannie and Freddie which was a major calls.
Of the 2008 crisis not the only calls but a major calls if those four words Fannie Mae Freddie Mac were nowhere in the bill.
We kept hearing all we'll get to that next year -- next year is now and nobody's willing to act on the democratic side we need to act to reform those entities.
All right -- if you -- it's much specificity as possible senator what is your -- what's the best plan you heard of from.
Cutting these in social analyst -- so far.
The best plan seems so far is a plan just introduced by senator Bob -- -- Republican on the committee.
To gradually -- out the dominance of Fannie Mae Freddie Mac over ten years.
Not overnight but a real plan to -- -- out and reintroduce.
Private players into the market right now we're essentially doing.
Exactly the opposite -- there was a vote in the senate last week he even increase their role in the marked increase -- doubts.
There is a vote in the senate.
-- let them get involved in mortgages to a higher dollar.
Which was outrageous.
Voted against it but it pass -- -- it did pass a senate whats it gonna do in the house.
I think it's being killed in the conference committee thank goodness.
But that just makes the point at least in the senate would been moving in the wrong direction not.
Reforming Fannie and Freddie not backing out of the market meanwhile the taxpayers on the hook.
For first it was a 10578.
Billion dollars and now we're hearing that want another.
Fourteen billion on top of that through 2012.
The treasury has an open ended rescue plan for them in other words taxpayers on the hook.
For an an unlimited amount that's product.
Well these guys who came -- -- -- and thankfully at that at the very least both Republicans and Democrats are against giving these guys bonuses.
But they came in saying their bonuses were deserve for -- I listen to you talk about.
What it all the money that that -- more on the hook for now what have they done that so good deserving of those bonuses.
-- nothing.
But again the bigger problem is there's no plan that there even supposed to be executing.
To back Fannie and Freddie and taxpayer liability out.
And I think that's the the most important thing we need to provide then we need executives -- -- -- that and be compensated.
Only if they execute that plan and save taxpayer dollars.
Senator David bitter member of the senate banking housing and urban affairs critic senator thank you so much for coming up please -- -- -- very much.
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