Chief
08-18-2007, 07:36 AM
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/17/AR2007081702202.html?hpid=topnews
Democrats Seek Bigger Role for Firms
By David S. Hilzenrath
Washington Post Staff Writer
Saturday, August 18, 2007; Page D01
Leading Democrats pressed their case yesterday to give Fannie Mae and Freddie Mac a larger role in the troubled mortgage markets, arguing that the two companies should be allowed to buy bigger mortgages and more of them.
The market upheaval has shifted a long-running discussion of the government-sponsored finance companies from the esoteric edges of inside-the-Beltway policy arguments to the forefront of the debate over how Washington should respond to a credit crunch. It has given supporters of Fannie Mae and Freddie Mac fresh ammunition to challenge those who think the companies should be kept on a tighter leash.
Christopher J. Dodd (D-Conn.), chairman of the Senate Banking Committee and a candidate for president, told reporters that regulators should raise limits on the companies' mortgage investments by 5 percent so they can pump more money into the housing finance system. Together, Fannie Mae and Freddie Mac hold about $1.4 trillion of mortgages and securities backed by mortgages.
Dodd was elaborating on a position he staked out days earlier and was firing back at President Bush, who last week said Fannie Mae and Freddie Mac should be reformed before the government considers loosening their restraints.
Dodd said Congress can't pass a reform bill fast enough to deal with the crisis at hand.
The Bush administration wasn't budging.
**SCHNIPP**
The last thing we need is Congress jumping into this mess, especially when it's a congress Critter who has aspirations for 2008...
Hold Fast...
Democrats Seek Bigger Role for Firms
By David S. Hilzenrath
Washington Post Staff Writer
Saturday, August 18, 2007; Page D01
Leading Democrats pressed their case yesterday to give Fannie Mae and Freddie Mac a larger role in the troubled mortgage markets, arguing that the two companies should be allowed to buy bigger mortgages and more of them.
The market upheaval has shifted a long-running discussion of the government-sponsored finance companies from the esoteric edges of inside-the-Beltway policy arguments to the forefront of the debate over how Washington should respond to a credit crunch. It has given supporters of Fannie Mae and Freddie Mac fresh ammunition to challenge those who think the companies should be kept on a tighter leash.
Christopher J. Dodd (D-Conn.), chairman of the Senate Banking Committee and a candidate for president, told reporters that regulators should raise limits on the companies' mortgage investments by 5 percent so they can pump more money into the housing finance system. Together, Fannie Mae and Freddie Mac hold about $1.4 trillion of mortgages and securities backed by mortgages.
Dodd was elaborating on a position he staked out days earlier and was firing back at President Bush, who last week said Fannie Mae and Freddie Mac should be reformed before the government considers loosening their restraints.
Dodd said Congress can't pass a reform bill fast enough to deal with the crisis at hand.
The Bush administration wasn't budging.
**SCHNIPP**
The last thing we need is Congress jumping into this mess, especially when it's a congress Critter who has aspirations for 2008...
Hold Fast...