WASHINGTON -A Goldman Sachs & Co. report released Thursday urged Fannie Mae and Freddie Mac to negotiate with the Louisiana Republican lawmaker whose bill would increase federal regulation of the two secondary mortgage market giants.

Rep. Richard Baker, speaking at a meeting sponsored by Aegon Financial Services Group Inc., praised the report and continued to urge Fannie and Freddie to work with him on compromise legislation. He has long voiced concern that the two government-sponsored enterprises have become large enough that their failure would wreak systemic disaster on the U.S. economy.

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