WASHINGTON, March 28 (UPI) -- The giant mortgage financing agency Fannie Mae late Sunday sent a signal to lawmakers it is going to fight proposed legislation changing its regulator.
The legislation creates a new independent regulator with broad powers to force Fannie Mae, Freddie Mac and the Federal Home Loan Bank system to adhere to restrictive policies amid fears their growth potentially threatens the entire financial system.
The statement said Fannie Mae believes "the current draft would not gain the necessary consensus support across the housing industry," suggesting it will mobilize its considerable number of Capitol Hill backers in opposition, United Press International reported.
The statement did not specify what the publicly chartered but private corporation does not like. Fannie Mae is assumed to be drawing the line at Senate Financial Services Committee Chairman Richard Shelby's intent to give the new regulator power to force it into receivership if necessary. That would mean shareholders and debt holders could bear the full brunt of any catastrophic losses.
The battle to draft legislation is watched closely by financial markets. Late last week traders added a slight premium to Fannie Mae's debt issues apparently reflecting concern Congress is distancing itself from the government sponsored enterprise.
