Bernanke urges limits on Fannie and Freddie

The AP reports:

Ben Bernanke, the nominee to become the next chairman of the Federal Reserve, said Congress should limit the massive holdings of mortgage giants Fannie Mae and Freddie Mac in an effort to limit any danger their debt poses to the overall economy.

"Capping the size" of the two mortgage companies' portfolios is "important for controlling potential systemic risk," Bernanke said in a written response to a list of wide-ranging questions from Sen. Jim Bunning, R-Ky. Bunning's office released Bernanke's responses on Tuesday.