"Lets remind ourselves, this began with predatory lenders out there marketing products that borrowers could not afford. Fannie and Freddie were never bottom feeders. They had some Alt-A, they had some subprime, but nothing to the extent these other institutions had. That's where the problem lay."
Chris Dodd, former Senator from Connecticut @ 1:15:10
July 15, 2008 Senate Banking Committee Hearing on Preserving the viability of our Nation's Government Sponsored Enterprises with Hank Paulson, Ben Bernanke, and Christopher Cox
Points of interest:
"Fannie and Freddie play a central role in our housing finance system and must continue to do so in their current form as shareholder owned companies."
Hank Paulson @ 10:40
"Our proposal was not promoted by any sudden deterioration in conditions at Fannie Mae or Freddie Mac, OFHEO has reaffirmed that both GSE's remain adequately capitalized."
Hank Paulson @ 12:21
"You don't think, several years down the line when the shares that the treasury has bought in Fannie and Freddie turnout to be a windfall and were able to balance the budget, you won't be heralded and saluted for the role that you played in that? I say that with tongue-in-cheek."
Tom Carper, Senator from Delaware @ 46:51
"The tax payers have reacted and the market has reacted to your plan, Secretary Paulson, by driving down Fannie Mae shares by 26% today, right now, and Freddie Mac's are down 29%, as of this moment."
Jim Bunning, former Senator from Kentucky @ 1:23:10