Dodd, Shelby Appear Still Deadlocked Over GSE Measure

Thu. May 15, 2008


Senate Banking Chairman Christopher Dodd said this afternoon he has not reached any verbal agreements with ranking member Richard Shelby on legislation that would provide new oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Bank System. Dodd and Shelby have been involved in serious negotiations prior to today's rescheduled 3 p.m. markup. The panel has struggled for years to strike a deal on a measure in the aftermath of major accounting scandals at Fannie and Freddie, which are government-sponsored enterprises that purchase home mortgages and repackage many of those loans into securities that are sold in the secondary market. The two sides are wrangling over provisions that would place restrictions on the two organizations' portfolio holdings and their capital reserve requirements, as well as language that would allow the Federal Housing Administration to insure up to $300 billion in new mortgages for troubled borrowers. Dodd spoke about negotiations on the Senate floor this afternoon, noting that Shelby requested the delay in the markup to work on some additional provisions.

Banking member Bob Corker, R-Tenn., said he was concerned he would not have enough time to review the changes in a more than 400-page bill prior to the markup and threatened to object to the request to meet. "Many senators in this body candidly may not ever take the time to look at [this bill] because of the technicalities that exist and the specialties that will be addressed, if you will, by this bill," Corker said. "I'm very tempted to object to this, not because it's taking place, but because of the fact that we do not have any of the documentation regarding the agreements that have been made." Dodd replied that no verbal agreements have been made as of noon, but he made no mention of any written agreements. "I appreciate his not objecting and we'll see how things progress, we'll keep working at it and his involvement will be critical," Dodd said. Corker said he was still concerned, noting he was receiving e-mail updates as of 1:30 a.m. today on negotiations. "I have seen no written copies of any of the agreements that have been made. That would be nice to see prior to the markup of this type," Corker said.

by Bill Swindell