Also in this playlist...
This transcript is automatically generated
Let's have shoring up Fannie Mae and Freddie Mac may be calming the markets but it's having the opposite effect on Capitol Hill.
Some are getting worried about the cost of helping Fanny and Freddie will be -- tax bias on -- back.
My next guest says we should simply slow down on this minority whip congressman Roy Blunt of Missouri joins -- now congressman good to have you with us.
nice to be with you that you want action on -- could you say this.
But you don't like the Treasury's plan for dealing and backing up the housing agencies want don't -- alike about the Treasury's plan.
-- I like quite a bit about the treasury plan what I think is we don't need to combine it with this huge.
Housing bill that does everything from -- local governments into -- purchasers.
A standalone single family housing which they're not very good at managing -- -- -- nobody probably worsen managing standalone single family house -- -- local government is or the bailout.
Is I think excessive or the annual fund that that we would -- divide up the new.
And an authorized perpetual housing fund that the secretary of -- and the secretary of the treasury.
Just distribute every year and that funds paid for by a new tax.
-- that the GSCs would have to but it would have to provide us you know say that these these people -- -- -- they need to bail -- enrich enough.
They can handle an additional tax but let's -- -- -- I'm not the package we could put together.
Congressman you that you want to -- -- opposed to generally to the tones of the 300 billion dollar bailout that the senate has agreed to.
But generally speaking you law in -- of the Treasury's plan to backstop Freddie and Fannie.
I got it right generally -- generally -- and favour of a GSE reform.
The treasury plan with as it was much.
As you can put in it to have a regulator.
That has the potential to see that this doesn't happen again -- regulator that can go win.
And see where Freddie and Fannie are in their essentially they're hedge fund their portfolio management.
Be sure this doesn't happen again don't exacerbate this.
By it by saying OK it is in fact true that faith full faith and credit.
Of the federal government is there and so you can loan money is -- -- you want and then they can go into the marketplace.
In any way they want I think we can come out of this with some really good results but we don't need to rush through this in the next.
48 hours the next week as long as we get this done by.
By the time we leave here fifteen days from now.
I think the markets are secure.
Freddie and Fannie are secure.
And we move into the future without creating lots of new problems.
Do we need this -- by a back up.
Fannie and Freddie could raise fresh capital.
From for example sovereign wealth funds all they -- have a rights issue to bring in more money from existing show -- today.
-- simply have to have taxpayer money.
I don't know if they'll have to have taxpayer money even if you've given the taxpayer backup I'm hoping that if you do this that you never have to use it and the fact that it's there.
Mean you wouldn't have to use it but I'd really like to see this combined with a strong.
Regulator that if necessary could always come back in and say look you haven't met the obligations you needed on capitalization requirements.
You've been to aggressively out there investing your money in essentially create a hedge fund with.
With a cushion you have and were in fact not to let this happen again somebody's gonna come -- As a strong regulator with the potential always of -- root of receivership out there.
As what could happen if we do that I think you probably never get to the taxpayer money.
And what we -- and also another thing you doing -- Stewart is were proposing.
That these agencies have now become too big to fail with -- Involved in these two agencies one way or another.
Would even have higher loan limits that would help places like San Francisco.
And Boston but wouldn't help most of the rest of the country last one real fast congressman can you -- -- the political connection.
I think that who's on the board how the word functions is important and I would hope that the regulator would have the pass to go -- And look at the word.
See who would needs to be added to that board to make the word truly.
Both independent but also protecting the stockholders and the taxpayers of the kind of the company.
And if -- if there's anybody it's gonna take a bath here should be.
The people would have managed Fannie and Freddie into the situation but I don't think anybody has to take that -- I think we ought to be sure we get the most out of this moment we can.
To secure these organizations for the future minority whip congressman Roy Blunt thanks for joining us up.
-- -- --
Filter by section