Senate Votes on Dodd, McCain Fannie/Freddie Financial Reform Amendments

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An amendment offered by Senator Chris Dodd (D-CT) to the Restoring American Financial Stability Act (S. 3217) has been adopted by a vote of 63-36.

It would require “the Secretary of the Treasury to conduct a study on ending the conservatorship of Fannie Mae and Freddie Mac,” according to the Senate Periodical Press Gallery.

An amendment offered by Senator John McCain (R-AZ) was defeated by a vote of 43-56.

It would put in place “an orderly transition period to end the conservatorship of both Fannie Mae and Freddie Mac and eventually requires each to operate – without government subsidies – in a fair and equitable manner with private sector competitors,” according to a press release.

Read more about what the “conservatorship” term means for these two entities here.

(credit image – obx market report)

1 Comment

Filed under Banks, Fannie and Freddie, Wall Street

One response to “Senate Votes on Dodd, McCain Fannie/Freddie Financial Reform Amendments

  1. The phasing out of Fannie Mae and Freddie Mac will bring back private capital and banks to the real estate market and the playing field will be level for private capital investment. Borrowers will also be required to put down a larger down payment.

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