Shays Calls For Hearings On Fannie And Freddie

By Daniel W. Reilly

(The Politico)  Republican Rep. Chris Shays called for hearings on the role of mortgage giants Fannie Mae and Freddie Mac in the financial crisis Monday, accusing the two mortgage companies of “wretched manipulation” of Congress.

“We are not confronting the 800 pound gorilla in room…the role of Fannie and Freddie in this debacle,” said Shays at a congressional hearing on the financial crisis.

Shays wondered why Democrats will target Wall Street firms during their planned set of hearings, but not Fannie and Freddie, who he said offered the type of subprime loans that helped trigger the crisis.

“Congress stood idly by as Fannie and Freddie played with trillions of dollars under a different set of rules,” Shays said.

House Oversight and Government Reform Committee Chairman Henry Waxman said his staff is already reviewing documents provided by Fannie and Freddie and may hold hearings on the topic in the future.