The Hill reports:
Mortgage giants Fannie Mae and Freddie Mac are now basically a "public policy instrument" of the government, Rep. Barney Frank (D-Mass.) suggested Tuesday.You might ask where Barney Frank gets the constitutional authority to make this grand pronouncement? Will Moodys and S&P now consider Fannie and Freddie debt obligations of the U.S. Treasury?
Frank, the chairman of the House Financial Services Committee, asserted that the companies, which were taken over by the U.S. in September 2008, have become an extension of the government's policy-making tools.
"Remember now that Fannie and Freddie have been converted," Frank said during an appearance on CNBC. "Part of the losses of Fannie and Freddie are that since the housing collapse, Fannie Mae and Freddie Mac have become a kind of public utility."
