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Your quote is from 1995, and Newt was speaking about the business model several GSEs had adopted putting them into the private sector. They screwed that up royally...

For YEARS Freddie/Fannie have been known to be corrupt.
And Gingrich was pointing out HOW CORRUPT they were, even in 2008.

Here is a transcript of Newt saying on CSPAN, how horrible Freddie and Fannie were managed and they should be dismantled...

“Governing & Political Change” held in St. Paul, Minnesota.
September 3, 2008

“Bachmann: The question is on Fannie Mae and Freddie Mac
and the outrage and will it go private? or where are Fannie Mae and Feddie Mac going to go?

Gingrich: Well, I think this is one of the great tests of reform- of a populist reform conservatism.

There is ZERO reasons to bail out these two institutions.

They have violated the fundamental principle of why
they were created.

And I did a fair amount of-... Let me be right up front...
I did a fair amount of work with Freddie Mac, looking at
it, consulting it, but not at a fiduciary level, but at a
general public policy level.

I am appalled at the degree of management
irresponsibility that both places have had, and I think
they should be treated precisely like a private sector institution,

And the stockholders, and the senior management should
fundamentally have to bear the brunt...

I don’t think you want to let them go broke, because
they’re enormous, and that has a BIG second and third order
consequence on the system.

But I think what you want to say, is as a consequence of
their survival, they should be broken up, they should
go thru the equivalent of a receivership, and everybody who
was profiting from them should pay the cost of having failed.

And the general taxpayer should NOT bear that burden.
and I think that could be handled totally different.

But there is ZERO reason, now that they’ve failed...
I was perfectly happy to not PUSH the issue, as long as
they weren’t failing, but NOW that they’ve clearly failed their fiduciary responsibility, there is zero reason for the average taxpayer to bail out these institutions.

And their senior managements have been DISGRACEFUL
in the mismanagement, particularly I think, of Fannie
Mae which had huge, huge, internal problems
in terms of accounting, in a way you can’t quite understand...

How could people run an institution THAT badly? “

(Here is Royyal Wulff’s pointer to that historical video clip)
http://www.youtube.com/watch?v=-YiYWnA1_y8&feature=player_embedded