Johanns praises committee approval of finance bill

After delaying a vote two weeks ago, the Senate Banking Committee Thursday voted to forward to the full Senate a bill that would restructure the housing finance system.

Senator Mike Johanns says the bill allows smaller community lenders like so many in Nebraska, to compete with big banks. The bill was modeled on a plan crafted by Johanns, along with Senators Bob Corker of Tennessee and Mark Warner of Virginia that the Banking Committee used as a foundation for the bill passed forward by the committee Thursday.

Johanns says the bill winds down two government sponsored giants, Fannie Mae and Freddie Mac. He says it creates a competitive dynamic system that relies more heavily on private capital, as opposed to taxpayer dollars. Johanns went on to say that if this bill had been in place prior to the 2008 collapse, there would have been no $187 billion taxpayer bailout.

The 13-9 vote passed Thursday was one vote more than senators indicated they had during the first mark-up on April 29.

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