Baker Not Inclined to Limit GSE Debt

The chairman of the GSE subcommittee said that in more closely regulating Fannie Mae and Freddie Mac he is not inclined to limit their debt issuance, a move that has been suggested by Federal Reserve chairman Alan Greenspan.At a Congressional hearing Wednesday morning Rep. Richard Baker (R-La.) noted, however, that when it comes to debt issuance a GSE regulator should have, "the responsibility to make those judgments or recommendations to Congress." Rep. Baker said he likely will introduce his GSE regulatory bill by the end of March. His bill will include the stipulation that any new regulator have full receivership powers and the authority to review new GSE products before they are introduced to the market place. He also wants to impose full SEC registration on Fannie Mae and Freddie Mac. He wants the regulator to have the ability to review executive compensation and severance packages. He told reporters that he wants to consult with the Bush Administration before introducing his bill, adding that he thinks the House and Senate will conference on a final GSE bill by year-end.