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Congressman Vito Fossella (R-NY13) today released the following statement on government efforts to restore investor confidence in Fannie Mae and Freddie Mac:
“The economic challenges of the past 12 months have led to unprecedented action by the federal government to stabilize the markets and encourage economic growth. Congress will act quickly to ensure Fannie and Freddie receive needed capital to help restore investor confidence. Failure to do so poses long-term risks to the health of the global financial system. However necessary and immediate these actions may be, Congress and the Administration should ensure that minimizing taxpayer exposure and addressing issues of future systemic risk are primary objectives. For the long-term health of the markets and the American economy, it is essential that investors have confidence in the private market with minimal reliance on government intervention. In addition, Congress has a responsibility to reform the regulatory framework of our financial system to more effectively manage risk and allow our markets to compete in a dynamic and changing marketplace.”
