Shelby: Include Fannie & Freddie in reform
May 9, 2010 | federal legislation, industry | Comments (1)A Democratic plan to rein in the financial industry is flawed because it fails to tighten control over two large government-sponsored mortgage companies blamed for creating a demand for risky loans and inflating the housing bubble, a leading GOP senator on banking issues says.
The legislation “touches nearly every corner of the economy,” Alabama Sen. Richard Shelby said in the GOP weekly radio and Internet address. “But these major contributors to the crisis are left unscathed,” he added, singling out Fannie Mae and Freddie Mac.
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Amen!
Fannie Mae, Freddie Mac, AIG, and the big Wall Street banks were the cause of this financial crisis. Not small lenders making $200 loans. Congress should focus on regulating these institutions and let the states regulate payday lending.