ML-Implode News - Senators push bill to scrap mortgage firms Fannie, Freddie

A bipartisan group of senators on Tuesday introduced a bill to abolish Fannie Mae and Freddie Mac and replace them with a government reinsurer of mortgage securities that would backstop private capital in a crisis.
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Under the bill, which is being led by Tennessee Republican Bob Corker and Virginia Democrat Mark Warner, the two companies would be liquidated within five years. The legislation would provide for government reinsurance that would kick in only once private creditors had shouldered large losses.

It remains to be seen whether this would be any practical difference in the kind of market distortion and meddling that Fannie and Freddie represent.

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Senators push bill to scrap mortgage firms Fannie, Freddie