BREAKING NEWS: Joe Sestak’s Bailout of Fannie and Freddie to Cost Taxpayers Twice as Much
 
Allentown – Today, the Washington Post reported that Congressman Joe Sestak’s bailout of Fannie Mae and Freddie Mac “could more than double in size during the next three years.”
 
According to the Washington Post: “The federal bailout for Fannie Mae and Freddie Mac could more than double in size during the next three years, according to projections from the companies’ federal regulator.  Fannie and Freddie, the federally-controlled mortgage finance giants, will likely need at least another $73 billion and perhaps as much $215 billion from taxpayers in the next three years to meet their financial obligations, the Federal Housing Finance Agency said . . . To date, the Treasury has already injected $148 billion into Fannie and Freddie.  Under the worst-case scenario, in which the country enters a second recession, the total infusion would equal $363 billion in three years.”
 
Not only did Joe Sestak vote to bail out Fannie Mae and Freddie Mac – in addition to his bailouts of Wall Street and the auto companies – he also voted against imposing more regulations on Fannie and Freddie to rein in the mortgage giants’ out-of-control growth and the liability to taxpayers. 
 
And worse, Congressman Sestak voted against reforming Fannie and Freddie just a couple of months ago (RC #229, 06/09/10) (Wall Street Journal, 06/09/10)!
 
In stark contrast, Pat opposed all the bailouts from the very beginning.  In fact, he warned about the dangers of taxpayers having to foot the bill for Fannie Mae and Freddie Mac in his freshman year in Congress and cosponsored legislation to impose tougher regulations on Fannie and Freddie.
 
“Congressman Sestak voted against regulating Fannie Mae and Freddie Mac and to bailout them out when they failed, and now taxpayers are paying the price because of his disastrous votes,” Toomey Communications Director Nachama Soloveichik said. “Joe Sestak votes with the extreme left-wing of his party and the Democrats in Congress nearly 100% of the time.  He votes for bailout after bailout and he is the only person in America who thinks President Obama’s failed ‘stimulus’ didn’t go far enough.  Now, we find out that Sestak’s failed policies will cost Pennsylvania taxpayers twice as much.  We simply can’t afford Joe Sestak in the U.S. Senate.”
 
Joe Sestak’s support for bailouts is irrefutable. Please find a timeline of Sestak’s bailouts HERE. 
July 25, 2000: Pat Toomey warned about Fannie and Freddie growing too large (House Banking and Financial Services Committee Hearing, 07/25/00).
July 27, 2000: Pat Toomey cosponsored legislation to rein in Fannie and Freddie (The Housing Finance Regulatory Improvement Act, HR 3703).
June 24, 2003: Pat Toomey cosponsored legislation to impose new regulations on Fannie and Freddie (Secondary Mortgage Market Enterprises Regulatory Improvement Act, HR 2575).
May 2007: Sestak voted against new regulations on Fannie Mae and Freddie Mac (RC #383, 05/17/07).
July 23, 2008: Sestak voted to bail out Fannie Mae and Freddie Mac (RC #519, 07/23/08).
October 3, 2008: Sestak voted to bail out Wall Street (RC #681, 10/03/08).
October 2008: Sestak bought stock in Bank of America, one of the banks that received bailout money (Morning Call, 06/15/09).
December 10, 2008: Sestak voted to bail out the auto companies (RC #690, 12/10/08).
January 22, 2009: Sestak voted to release the second half of the Wall Street bailout money.  99 Democrats voted against a second Wall Street bailout (RC #27, 01/22/09).
March 5, 2009: Sestak sponsored legislation to force taxpayers to bail out other people’s mortgages (The Home Ownership Vesting Plan of 2009, HR 1356)
September 2009: Sestak opposed a bipartisan effort to end the Wall Street bailout (Press release, 09/26/09).
June 9, 2010:Sestak voted against reforming Fannie and Freddie (RC #229, 06/09/10) (Wall Street Journal, 06/09/10)
October 15, 2010: Sestak ran an ad claiming the bailouts “made him sick.”