Hill Introduces Bill to Prevent Bailouts of Government-Sponsored Enterprises
Washington, December 11, 2017
Tags: Financial Services
Congressman French Hill (AR-02) introduced H.R. 4560, the GSE Jumpstart Reauthorization Act of 2017.
This legislation would extend an existing prohibition while preventing the U.S. Treasury Department from selling its Government-Sponsored Enterprise (GSE) preferred shares. It also would require the GSEs to pay dividends to the Treasury Department prior to making payments to the Housing Trust Fund for that year.
“By allowing the GSEs to retain earnings is beside the point,” said. Rep. Hill. “The U.S. Treasury still backs the GSEs with a line of credit standing at over $250 billion and, while Fannie and Freddie remain in conservatorship, the taxpayers continue to be on the hook. Rather than increasing taxpayer exposure by withholding money, it is time to mandate that the GSEs pay their bills to taxpayers before growing this Trust Fund.”
H.R. 4560, introduced December 6, 2017, would do the following: