Washington, D.C. - In advance of House floor debate later today, U.S. Congressman Kevin Brady (R-TX) today released the following statement:

“There’s no question that if these two mortgage giants were to collapse, it would deal a serious blow to our economy and nearly every community would feel the negative effects.

If the White House and this Congress are convinced the plan will calm the waters, then I am certainly hopeful it works.

But this bailout fails in one important aspect: it doesn’t fully solve the problems that brought Freddie Mac and Fannie Mae to this crisis point, so taxpayers have no guarantee that these two companies won’t be back again for another handout.

Before we use taxpayer dollars to potentially increase the national debt, provide an unlimited line of credit and allow the government to buy nearly a trillion dollars of stock in private companies, then Congress needs to insist on three conditions:

First, unlike today, Freddie and Fannie must be required to have the capital standards necessary to ensure their fiscal stability,

Second, that over a set period of time they are gradually reduced in size so that America’s housing eggs are not all in one basket, and

Third, that the leadership of Freddie Mac and Fannie Mae be replaced immediately. The millionaire captains who grounded this ship have proven they are not the ones to steer us to calmer seas.

I am skeptical that the proposed new federal regulator is strong enough to take these necessary steps so it is essential that Congress insist on adding these safeguards in law before we put the taxpayers on the hook for the bailout.”