Bipartisan Senate legislation would wind down Fannie Mae and Freddie Mac in five years and in the interim would maintain the current arrangement in which the mortgage financiers pay all of their profits to the Treasury.
The U.S. Senate plan to dismantle Fannie Mae and Freddie Mac will leave it to the courts to decide how investors in the two companies are treated, Senator Mike Crapo said today in a Bloomberg Television interview.
A bipartisan U.S. Senate plan to dismantle Fannie Mae and Freddie Mac must clear many political hurdles in a short time if it is to become law, leaving narrow chances of a housing-finance overhaul being enacted this year.
Chances that Congress will move this year to wind down or transform Fannie Mae and Freddie Mac are dimming as lawmakers confront a split among Senate Democrats and a change at the regulator of the mortgage finance companies.
U.S. Senate Banking Committee Chairman Tim Johnson, who has done most of his work away from the spotlight the past five years, won’t escape the glare of the TV lights when he takes the gavel to question JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon about $2 billion in trading losses.