Anne Barth Press Release

‘SHELLEY COME LATELY’:
FREDDIE MAC, FANNIE MAE BAILOUT PRODUCT OF FAILED
BUSH-CAPITO POLICIES
- Sound Economic Policies Do Not Result in Bailouts- 

Charleston, W.Va. – Once again, the American taxpayer is paying a high price for the failed policies and neglect of George Bush and Shelley Moore Capito, with the government bailout of Freddie Mac and Fannie Mae, the giant mortgage finance companies.

“The unfolding bailout by the Bush Administration of both Freddie Mac and Fannie Mae was a last resort and will help quell the markets, but leave the American taxpayers to pick up an expensive tab,” said Anne Barth, the Democratic nominee for Congress.  “Sound economic policies do not result in bailouts.”

News reports point to Administration officials who ignored the growing instability of Freddie Mac and Fannie Mae.  In addition, Freddie Mac and Fannie Mae officials increased their risky sub-prime mortgages, which played a part in the housing market crisis, leading to a spike in the rate of home foreclosures, and the eventual government takeover of the mortgage giants.

“Once again, George Bush and Shelley Moore Capito are asking Main Street to bail out Wall Street,” said Talley Sergent, spokesperson for the Anne Barth for Congress campaign.  “In previous elections, George Bush, buoyed by Shelley Moore Capito, promised home ownership for every American, but what they didn’t tell you is that you wouldn’t get to keep it.”

“Mrs. Capito’s blind support for the Bush Administration has led us to this point and now taxpayers will pay nearly $100 billion for Bush-Capito’s failed policies,” Sergent said.  “She never held a hearing on the Financial Services’ Housing Subcommittee until a week after the sweeping housing legislation passed Congress – she’s too little, too late.  Second Congressional District voters deserve better.”

Shelley Moore Capito received campaign contributions this year, in the midst of the housing crisis, from Fannie Mae PAC, Countrywide Financial PAC, and Citigroup Inc. PAC – all three are major players in the housing crisis.  On June 6, Mrs. Capito accepted a $2,000 campaign contribution from Countrywide Financial PAC, which approved sub-prime mortgages for American homeowners.  In addition, Mrs. Capito received a $1500 contribution from Fannie Mae PAC, who was just overtaken by the federal government to dodge a complete housing market crash.  And, on May 13, Mrs. Capito accepted a $2,000 contribution from Citigroup Inc. PAC, which was one of the culprits of sub-prime mortgage lending that led to the housing market crisis.