(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today expressed support for Rep. Richard Baker (R-La.) and the House Subcommittee on Capital Markets, Securities, and Government-Sponsored Enterprises for holding hearings to investigate the staggering debt held by two government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac.

"Congressman Baker is doing a great service to homeowners and taxpayers by asking Fannie Mae and Freddie Mac some tough questions about their skyrocketing debt," said CCAGW President Thomas Schatz.  "His work will help ensure that these organizations stick to their mission of making home mortgages available for middle- and working-class families."

"Unfortunately, Fannie and Freddie are engaging in 'mission creep,' a common malady of government programs and quasi-government enterprises," Schatz continued.  "If they continue their quest to take on unlimited debt and reach into riskier markets, there is a potential danger of collapse on the scale of the savings and loan crisis of the 1980s."

CCAGW also today released a report on the GSEs, Corporate Welfare for the Politically Connected: The Story of Fannie Mae and Freddie Mac.  "Fannie Mae and Freddie Mac portray themselves as private institutions when it suits their needs, but imply that they are government-backed to potential investors,” Schatz noted.  “They cannot have it both ways."

Rep. Baker has introduced the Housing Finance Regulatory Improvement Act of 2000 (H.R. 3703).  Among other reforms, the bill would consolidate GSE regulation and oversight in a single agency.  Rep. Baker has also testified before the full House Banking Committee on the risks of GSE debt.

"Congressman Baker has been getting a lot of flak from Fannie Mae since he started talking about GSE debt.  Most federal bureaucracies, including quasi-government agencies like Fannie Mae, aren't happy to be put in the spotlight of congressional oversight," Schatz said.  "But America is well served when someone like Richard Baker is looking after taxpayers' money."

CCAGW is the lobbying arm of Citizens Against Government Waste, a nonpartisan organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.  CCAGW is a member of HomeEC, a coalition of taxpayer groups seeking greater accountability of GSEs.