FOR IMMEDIATE RELEASE
Thursday, July 15, 2010

Isakson Votes Against Financial Reform Bill That Over Regulates Main Street, Leaves Out Fannie Mae, Freddie Mac Altogether
Reiterates That Reforms Should Be Based on Results of Investigation by Financial Crisis Inquiry Commission

WASHINGTON – U.S. Senator Johnny Isakson, R-Ga., today voted against financial regulatory reform legislation because it fails to protect small businesses from additional, overreaching regulation and it exempts two of the biggest culprits – Fannie Mae and Freddie Mac – from increased regulation and oversight.

"This rush to judgment on the financial regulatory bill is wrong. It is wrong because it excludes Freddie Mac and Fannie Mae from any scrutiny or increased regulation," Isakson said on the Senate floor. "It is critical that we have all the players under scrutiny and all the players under regulation, not just trying to create a feel-good system where we reregulate those who are already regulated, saying we are doing something about the conditions in the market when, in fact, we are raising the cost of doing business, lowering the ability for banks and lending institutions to extend capital and, in fact, in some ways contributing to a continuation of the recession we experience today in America."

The Senate passed the conference report by a vote of 60-39. It now goes to President Obama for his signature.

Isakson, who ran a small business in Georgia for more than 30 years, also believes it is a mistake for Congress to pass reform legislation in the absence of all the facts and contributing factors that led to our economic crisis. Isakson originally introduced legislation to examine the causes of the current economic crisis in January 2009. On April 22, 2009, the Senate overwhelmingly passed an amendment by Isakson to the Senate's version of the financial fraud bill to create the Financial Crisis Inquiry Commission. President Obama signed the legislation into law on May 20, 2009.

"We find ourselves in the position of getting ready to pass a financial reform bill knowing that we are going to have a forensic audit of our financial system done by the Financial Crisis Inquiry Commission, which we unanimously funded and demanded, in six months," Isakson said. "It's like a doctor doing surgery before he does a diagnosis. It does not make a lot of sense."

The Financial Crisis Inquiry Commission has an $8 million budget, subpoena powers and 18 months to complete its investigation. The final report of this commission is due to Congress by December 15, 2010, with recommendations to ensure such a market meltdown never happens again.

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