Fannie Mae and Freddie Mac need to be placed under strong regulatory controls and their huge mortgage portfolios need to be capped, according to Ben Bernanke, who is expected to be the next Federal Reserve Board chairman."Capping the size of the GSE portfolios, which beyond a certain size do not contribute to the GSEs' housing mission, is also important for controlling potential systemic risk," the Fed nominee said in a written response to Sen. Jim Bunning, R-Kentucky. Fannie and Freddie's portfolios have combined assets of $1.4 trillion.
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