Senators Delay Action on Fannie Mae Amid Democrats’ Rift
By Clea Benson and Cheyenne Hopkins Apr 29, 2014 11:08 AM ET
U.S. Senate Banking Committee leaders indefinitely delayed consideration of a bipartisan bill to wind down Fannie Mae (FNMA) and Freddie Mac (FMCC) as rifts among the panel’s Democratic majority threaten to stall the measure.
Senator Tim Johnson, the South Dakota Democrat who leads the committee, and Senator Mike Crapo of Idaho, the top Republican, postponed a work session set for today as they try to win the support of at least a few of the half-dozen Democrats who haven’t embraced it.
“There continue to be important discussions to build a larger coalition,” Johnson said in an opening statement before the panel adjourned. “While we have the votes to report the bill out today, members of the committee have asked for a brief delay to try to work out additional issues.”
The Johnson-Crapo bill would replace the U.S.-owned companies over five years with federal insurance for mortgage bonds that would kick in only after private investors were wiped out. Current shareholders of Fannie Mae and Freddie Mac would be in line behind the U.S. in getting any compensation from the wind-down.
The measure has the backing of six Democrats and six Republicans on the 22-member committee. It needs more support from Democrats before Senate Majority Leader Harry Reid, a Nevada Democrat, will allow the full Senate to vote on it.
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http://www.bloomberg.com/news/2014-04-29/senators-delay-action-on-fannie-mae-amid-democrats-rift.html
