Banks and mortgage companies have started entering settlements with government-sponsored enterprises Fannie Mae and Freddie Mac over misrepresentation of loans that were sold. Just recently, the country’s largest bank – Bank of America – had a settlement of around $3 billion for misrepresenting some loans originally sold to Fannie Mae and Freddie Mac. Though some have taken this news on a positive light, not everybody’s happy.

Senior Democrat on the House Financial Services Committee Rep. Maxine Waters issued a statement revealing that she’s concerned over the agreement. She said that said settlement may be bad as it may result in another bank bailout that is shouldered by the taxpayers.

Her statement reads, “I’m concerned that the settlement between Fannie Mae, Freddie Mac and Bank of America over misrepresentations in the mortgages Bank of America originated may amount to a backdoor bailout that props up the bank at the expense of taxpayers. Given the strong repurchase rights built into Fannie Mae and Freddie Mac’s contracts with banks, and the recent court setback for Bank of America in similar litigation with a private insurer, I’m fearful that this settlement may have been both premature and a giveaway. The fact that Bank of America’s stock surged after this deal was announced only serves to fuel my suspicion that this settlement was merely a slap on the wrist that sets a bad example for other negotiations in the future.”