US Lawmakers To Question Former Fannie, Freddie Execs
12/08 09:44 AM
WASHINGTON (Dow Jones)--U.S. House lawmakers plan to press former Fannie Mae (FNM:$0.8748,$0.0048,0.55%) and Freddie Mac (FRE:$0.87,00$0.01,001.16%) executives for answers on the collapse of their firms on Tuesday, as Congress continues to assess blame for the ongoing financial turmoil.
The House Oversight and Government Reform Committee plans to hear from former Fannie Mae (FNM:$0.8748,$0.0048,0.55%) CEO's Daniel Mudd and Franklin Raines, as well as former Freddie heads Richard Syron and Leland Brendsel.
The hearing will give lawmakers a chance to question executives that have been frequently criticized in the wake of the two government-sponsored enterprises being taken over by the government in September. Republicans especially have sought to blame Fannie and Freddie, along with the Community Reinvestment Act, for helping cause the collapse of the housing market and resulting financial market dislocation.
Raines has long been a lightning rod in Washington, where he headed up the Office of Management and Budget during the Clinton administration before taking over at Fannie Mae (FNM:$0.8748,$0.0048,0.55%) . Raines left Fannie Mae (FNM:$0.8748,$0.0048,0.55%) in 2004 in the wake of an accounting scandal that lead to increased efforts to regulate the two GSEs.
Mudd and Syron were forced out of their positions following the government's takeover.
-By Michael R. Crittenden, Dow Jones Newswires; 202-862-9273; michael.crittenden@dowjones.com
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12-08-080944ET
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