"Hagel Statement on OFHEO Report Critical of Fannie Mae $11 Billion Accounting Scandal"
May 23rd, 2006 - WASHINGTON, D.C. – U.S. Senator Chuck Hagel (R-NE) issued the following statement today regarding the Office of Federal Housing Enterprises Oversight’s (OFHEO) report on Fannie Mae’s $11 billion accounting scandal. Last year, the Senate Banking Committee passed legislation introduced by Senators Hagel, Sununu (R-NH), and Dole (R-NC) to reform Government Sponsored Enterprises (GSE) like Fannie Mae.
“Fannie Mae has clearly violated its statutory housing mission. This report adds to the overwhelming amount of evidence that Fannie Mae is not appropriately regulated and it raises serious questions about its portfolio management and future liabilities for the American people. Fannie Mae’s agreement to limit the growth of its mortgage assets through its settlement reached with OFHEO is an important step toward protecting the American taxpayer. However, the failure to address the size and growth of Fannie Mae’s non-mission related assets represents serious potential liability for the American people and I will be asking OFHEO, Treasury and HUD what is being done to address this problem.
“Until Congress passes the GSE reform bill passed out of the Senate Banking Committee, we will be replaying these kinds of episodes. To protect the American taxpayer and investors, Congress must act this year,” Hagel said.