Susan Ferrechio
Washington Examiner
4/3/2011
Congressional Republicans are moving aggressively to wind down mortgage giants Fannie Mae and Freddie Mac, but they face resistance not only from Democrats, but members of their own party who fear rapid elimination of the two entities would destabilize the fragile housing market.
Sen. John McCain, R-Ariz., and House Republican Conference Chairman Jeb Hensarling, R-Texas, introduced identical bills in the House and Senate that would end the government conservatorship of Fannie and Freddie within five years.
The firms, known as government-sponsored enterprises, or GSEs, have cost taxpayers $150 billion since the government rescued them from near-collapse in during the housing crisis of 2008.
“The events of the last three years have made it clear that never again can we allow the taxpayer to be responsible for poorly managed financial entities who gamble away billions of dollars,” McCain said, introducing the bill in the Senate last week.
In the House, the bill could come up for a vote in committee in May, House Financial Services Committee Chairman Spencer Bachus, R-Ala., said.
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