WASHINGTON - Rep. Richard H. Baker, R-La., vowed Wednesday to fight for even tighter regulation of Fannie Mae and Freddie Mac than that proposed in the bill he introduced in February.
In a statement, Rep. Baker said negotiations with Fannie over reforming oversight of the government-sponsored enterprises "have broken down."
He said private meetings with Fannie officials have been "fruitless" and cited "continued inflammatory public oratory by Fannie Mae's chairman," Franklin D. Raines.
Rep. Baker may have been referring to a speech Mr. Raines gave Tuesday, in which he suggested that Fannie's critics have been trying to generate headlines to drive down the company's stock price.
"After receiving much feedback, it's clear to me now that my bill was too modest," Rep. Baker said.
He said that before the next session of Congress he plans to draft a new bill that would include "more bank-like regulation of GSEs, with prompt corrective action authority, including cease-and-desist and creation of receivership."
The bill would also address "the need to link the GSEs' favorable government status with adequate mission compliance," he said.
