Fannie Mae, Freddie Mac Regulator Rejects Cap Request

"OFHEO imposed the limits last year after Fannie Mae and Freddie Mac disclosed accounting misstatements of $11.3 billion. In order to end the restraints, the companies must complete an overhaul of accounting and governance and restore timely financial reporting, the agency has said." -- Eminently reasonable, we'd say. No offense to the "cheap mortgages are a birthright" crowd. So looks like the bailout brigade will have to overrule OFHEO if it wants to "Resolution Trust-ify" Fannie and Freddie.