Shares of mortgage securitizers Fannie Mae (FNM) and Freddie Mac (FRE), both wards of the State, are off 2% and 3%, respectively, after Senate Banking Committee Democrats managed to defeat a Republican-led amendment to the financial reform bill backed by Christopher Dodd (Dem., Connecticut) that would have forced the government out of the firms in two years’ time.
The amendment was opposed by the White House, and Dodd and other democrats managed to sideswipe the provision with a more limited measure calling on the U.S. Treasury to report on Fannie and Freddie’s status by next January, according to the write-up by The Wall Street Journal’s Michael Crittendon.
Today’s maneuver is one of several successes Dodd has achieved, he writes, including getting colleague Bernie Sanders (Ind., Vermont) to temper his request for Congressional control of the Fed Reserve.
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