Image via Wikipedia
House Democrat Barney Frank vowed on Fridayto get rid of mortgage giants Fannie Mae and Freddie Mac as part of an overhaul of the country's taxpayer-supported system for financing home loans.
"The remedy here is to, in fact, as I believe this committee will be recommending, abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance," said Frank, chairman of the House Financial Services Committee. "That's the approach, rather than a piecemeal one."
Frank's comments about the government-controlled entities, which help expand home ownership by buying up loans from lenders, come amid the Obama administration's renewed push to re-regulate Wall Street. Last week, the administration announced a proposed levy on the nation's biggest financial institutions. This week, Obama pushed for further measures to reduce risk-taking by megabanks.
Fannie and Freddie, though, have thus far escaped the chopping block. While Congressional Democrats and the administration push forward on measures to rein in Wall Street and protect consumers, there's been little public focus on what to do about the bailed-out mortgage giants, which were seized by federal regulators in 2008 due to their risk of failure.
Barney Frank: Abolish Fannie and Freddie
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_a.png?x-id=50679dd5-a751-4021-ba36-9172b2e6e21a)
