) -- Lawmakers from both political parties have asked for a probe into the Treasury Department's move to uncap potential aid to
Rep. Dennis Kucinich (D., Ohio), who chairs the domestic policy subcommittee on the House Oversight and Government Reform panel, said his congressional subcommittee plans to investigate Treasury's decision to
on government cash available to the two firms, the
Wall Street Journal
"This cannot be used simply to purchase toxic assets at inflated prices, thus transferring the losses to the U.S. taxpayers and acting as a back door," Kucinich said, addressing issues related to the Troubled Asset Relief Program in a statement released by his office.
Reps. Scott Garrett (R., N.J.) and Spencer Bachus (R., Ala.) also raised similar concerns in a letter to Rep. Barney Frank (D., Mass.), who chairs the Financial Services panel.
"With hundreds of billions of taxpayer dollars committed to these two organizations and trillions of dollars in total taxpayer exposure, this level of oversight is plainly insufficient," the two representatives wrote in their letter.
Kucinich also wants to investigate what options policymakers have to deal with housing issues. "I want to determine whether Fannie and Freddie have a cohesive plan to buy up underperforming mortgages that remain on the books of the big banks, at appropriate prices, and undertake a massive reworking of the terms of the mortgages," he said, the
Since bailing out Fannie Mae and Freddie Mac in September 2008, the government has pumped $60 billion into Fannie Mae and $51 billion into Freddie Mac, below the $200 billion limit for each firm that had been in place until last week, the