Bernanke Criticizes Fannie, Freddie Bill

The Washington Post reports:

In his first appearance before Congress as Federal Reserve chairman, Ben S. Bernanke picked up where Alan Greenspan left off, criticizing a House bill that would strengthen oversight of Fannie Mae and Freddie Mac for not going far enough to rein in the companies' investment portfolios.

Bernanke said the House bill would not give a new regulator for the two companies "sufficiently strong guidance" on how to regulate the portfolios, which he and others think have grown so large that they threaten the stability of the financial system.

It appears not everyone can be bought off by Fannie Mae.