Frank: GSE Limits Would Roil Market

Calling the Bush administration's bluff, Rep. Barney Frank, D-Mass., said there would be a "firestorm" if the administration blocked or limited Fannie Mae and Freddie Mac from issuing debt to fund their operations and growth.

"I think they would run into an absolute firestorm if they did that," Rep. Frank told a Federal Home Loan Bank forum here.

Treasury Department officials began to talk about their authority to regulate the debt issuances after it became clear this spring that they couldn't get Congress to pass a government-sponsored enterprise regulatory reform bill that met their objectives.

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