Months ago, the House Financial Services Committee reported a bill to reform Government Sponsored Enterprises (GSE’s), specifically FannieMae and FreddieMac, which specialize in providing affordable housing.
Reporting errors in these publicly traded GSE’s in the millions and billions raised the threat of another Enron and Congress responded with reforms to create an independent regulator.
The Republican chairman, Mike Oxley of Ohio, and the ranking member, Barney Frank of Massachusetts , agreed on a provision that mandates that Fannie and Freddie give 5% of their after tax profits to affordable housing advocates such as ACORN. The total figure is somewhere in the neighborhood of $1 billion – that’s with a B, billion.
The problem here in addition to the obviously offensive idea of forcing a publicly traded company, or any company for that matter, to give their after tax profits to anyone is that ACORN engages in political… Read More