House Committee Holds Hearing On GSE Collapse

The House Committee on Oversight and Government Reform held its sixth hearing addressing the financial crisis. This hearing focused on the collapse of government-sponsored enterprises Fannie Mae and Freddie Mac.

‘As part of our investigation, the committee obtained nearly 400,000 documents from Fannie Mae and Freddie Mac,’ Committee Chair Henry Waxman, D-Calif., noted in his opening remarks. ‘These documents show that the companies made irresponsible investments that are now costing federal taxpayers billions of dollars.’

‘The documents make clear that Fannie Mae and Freddie Mac knew what they were doing,’ Waxman continued. ‘Their own risk managers raised warning after warning about the dangers of investing heavily in the subprime and alternative mortgage market. But these warnings were ignored.’

The following witnesses testified during the hearing: Leland Brendsel, former CEO, Freddie Mac; Daniel Mudd, former CEO, Fannie Mae; Franklin Raines, former CEO, Fannie Mae; Richard Syron, former CEO, Freddie Mac; Charles Calomiris, Arthur Burns Scholar in International Economics, American Enterprise Institute; Arnold Kling, adjunct scholar, Cato Institute; Edward Pinto, former chief credit officer, Fannie Mae; and Thomas Stanton, fellow, Center for the Study of American Government at Johns Hopkins University.

Source: House Committee on Oversight and Government Reform

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