Shine a light on economic rescue plans

With trillions of dollars going into the federal government’s efforts to bring our economy back to life, it is critical that we don’t create an even bigger long-term problem by spending the taxpayers’ money ineffectively or failing to account for it.

The only way to do this is by requiring a higher level of openness and accountability than what is currently the case.  So I have joined with several other members of Congress in calling for the Federal Reserve Board to make more information public and to increase the overall level of transparency in its economic rescue efforts.

The Fed has originated 11 different spending programs, exposing more than $5 trillion in taxpayer capital.  Taxpayers must know where and how their money is being used.

I and several other members of Congress have also formally requested the chairman of the Financial Services Committee on which I serve to call Treasury Secretary Timothy Geithner to testify before the panel.  The secretary has addressed other congressional committees, but I believe there are issues that still haven’t been fully addressed.

Fannie and Freddie need more scrutiny

Last week, I introduced bi-partisan legislation with Rep. Edward Markey (D-Mass.) that would require more disclosure and transparency over Fannie Mae and Freddie Mac, the government sponsored mortgage institutions.  This legislation, The Fannie Mae and Freddie Mac Full Disclosure Act (H.R. 1353), would require Fannie Mae and Freddie Mac to pay registration fees and to disclose information about their securities. These are identical standards required for other publicly traded companies and issuers of private mortgage-backed securities.  This will help to bring more accountability to Fannie and Freddie as well as more protection to the American taxpayer.

The problems at Fannie Mae and Freddie Mac - and the risky loans they acquired - put the financial security of their own institutions in jeopardy and greatly disrupted capital markets. Investors, taxpayers and the institutions themselves will greatly benefit from additional transparency provided for in this legislation.

I was a cosponsor of similar legislation during the 107th Congress and the 108th Congress. It is very evident now – more than six years later - that significant problems may have been avoided had this legislation passed back then. I believe that passing this bipartisan bill now could provide the needed transparency to avoid future problems down the road.

Sincerely yours, Adam H. Putnam,
Member of Congress