The House Financial Services Committee expressed disappointment on Thursday over news that the Federal Housing Administration will need a $1.7 billion taxpayer-funded bailout.
“As we reflect on the five-year anniversary of the financial crisis and subsequent bailouts, it’s disheartening to see that Washington has failed to learn any lessons and continues flawed policies that created this mess,” HFSC Chairman Jeb Hensarling said. “Washington elites still have the power to take hardworking taxpayers’ money to bail out cronies who make bad bets. And nothing in the Democrats’ response to the crisis – the Dodd-Frank Act – will prevent another bailout. In fact, it writes bailouts into law.”
Hensarling said the FHA bailout would be an “unacceptable use” of taxpayer dollars, urging support for the Protecting American Taxpayers and Homeowners Act, which is designed to end taxpayer bailouts.
“Nothing symbolizes the limitless power Washington elites have over our economy like politicians bailing out the wealthy and well-connected,” Hensarling said. “We can’t expect a strong economy with capitalism on the way up and socialism on the way down, and that’s why bailouts must end.”