mr. chairman , i rise today to compliment both chairman baker and chairman oxley for their work in order to put together a bill that the main purpose which is to regulate and strengthen the regulation of fannie mae and freddie mac . 
if anyone here questions the need for additional remedies such as regulations , all we have to do is look at a brief history going back a couple of years of these two entities . 
back in january of 2003 , freddie mac issued a press release and stated it will issue an unaudited statement of earnings for the year 2002 and restate accounting results for prior years . 
november of the next year , november 2003 , freddie issues a restatement of past accounting results for the year 2000 , 2001 , 2002 , and revises its net earnings upwards by $ 4.4 billion that they were off in their records . 
september of 2004 , ofheo makes public a report highly critical of accounting methods of fannie mae . 
november of 2004 , fannie announces that it is unable again to file a third-quarter earning statement because its auditor , kpmg , refused to sign off on the accounting results . 
december of 2004 , the securities and exchange commission , the sec , issues a statement supporting ofheo 's report and orders fannie to restate its financial results . 
again , in december of 2004 , the fannie ceo franklin raines and cfo tim howard have to resign from those entities . 
finally , in june of 2005 , after 3 years , finally freddie issues its first audited annual report since the year 2002 . 
and now we are here in october , and we look back about a week or so ago , and press reports are out again suggesting that investigators have uncovered again new accounting violations of fannie mae , possibly including overvalued assets , underreported credit losses , and misused tax credits . 
mr. chairman , if there was ever a need of entities that need additional regulation , it is fannie mae and freddie mac . 
if there are ever two entities that need to be limited in their size , it is these two entities . 
if there were every two entities that need not grow , it is these two entities . 
i applaud the chairmen for their work to regulate them . 
