Fox News
5/21/1o
Prodded by national anger at Wall Street, the Senate on Thursday passed the most far-reaching restraints on big banks since the Great Depression. In its broad sweep, the massive bill would touch Wall Street CEOs and first-time homebuyers, high-flying traders and small town lenders.
The financial industry, Obama said, had tried to stop the new regulations “with hordes of lobbyists and millions of dollars in ads.”
For all its breadth, the bill stopped short of taking on the nation’s giant mortgage companies, the government-affiliated Fannie Mae and Freddie Mac. Democrats feared that incorporating massive housing policy into the bill would have sunk it.
The two companies lowered their standards for borrowers during the housing boom and now those high-risk loans are defaulting at a record pace, prompting a $145 billion government rescue.
“Perhaps what is most disappointing about the lack of attention to Fannie and Freddie is the fact that there is no end in sight,” Shelby said. “Losses continue to mount and taxpayer exposure is unlimited.”
