Mortgage Giants' Aid Faces GOP Skepticism

Washington Post (07/16/08) P. D1; Birnbaum, Jeffrey H.; Hilzenrath, David S.
The Bush administration has called on Congress to quickly pass its plan to rescue Fannie Mae and Freddie Mac, but the proposal came under heavy criticism during a hearing before the Senate Banking Committee. Sen. Jim Bunning, R-Ky., said Treasury Secretary Henry Paulson Jr. essentially wants to write a "blank check" to save the mortgage finance giants; and Sen. Richard Shelby, Ala., the ranking Republican on the panel, could be considering changing the plan. House Majority Leader Steny Hoyer, D-Md., also suggested that hearings should be held before taking up the measure next week. The Bush administration wants to temporarily increase the amount Fannie Mae and Freddie Mac can borrow from the Treasury and allow the government to invest directly in the companies if they continue to struggle.