Dems Vote Down Fannie-Freddie Reforms

The Democrats’ overhaul of the banking system goes to conference this afternoon to hammer out a compromise between the two bills passed by each chamber.

Neither bill addresses an overhaul of Fannie Mae and Freddie Mac — the two entities at the very heart of the financial meltdown — rendering any claim that the Democrats’ bill fixes what ails the banking system laughable.

In their third attempt to offer spending cuts on the House floor through procedural maneuvers voted on by members of the public, Republicans offered a YouCut proposal yesterday to reform Fannie and Freddie.  Democrats voted it down (names at the link).  

“By rejecting [yesterday’s] YouCut proposal to reform Fannie Mae and Freddie Mac, House Democrats make a mockery of their claims to be serious about financial reform and stopping taxpayer bailouts,” said House Republican Leader John Boehner (R-Ohio).  “The American people want reform, not more permanent bailouts for Washington Democrats’ Wall Street allies.” 

“This conference is an opportunity to listen to the American people and work together on common-sense solutions to end the bailouts, reform Fannie Mae and Freddie Mac, and hold Wall Street accountable for its actions,” Boehner added.  “I am confident that the Republican conferees will ask the tough questions and serve as strong voices for taxpayers.”

Boehner and Speaker Pelosi (D-Ca.) have named their conferees including  a long list of relevant committee chairmen and ranking Republicans.

Seven Democrats and five Republicans from the Senate will participate in the conference.