Election Changes Senate's GSE Reform Mix

Three Republican hardliners on GSE reform will not be returning to the Senate Banking Committee in January, and the panel could have a new chairman in the wake of Democrats winning the White House and larger majorities in the House and Senate. During their terms Republican senators John Sununu (N.H.), Elizabeth Dole (N.C.), and Chuck Hagel (Neb.) co-sponsored several bills to tighten regulation of Fannie Mae and Freddie Mac but their efforts did not garner much Democratic support. Sens. Sununu and Dole lost their re-election fights on Tuesday and Sen. Hagel did not run for another term. Ms. Dole also was a booster of the mortgage insurance industry. (Four of the nation's seven MIs are based in North Carolina.) Next year, the Banking Committee may consider legislation to restructure the two GSEs, which were taken over by the government on Sept. 7 and placed into separate conservatorships. Meanwhile, committee chairman Christopher Dodd (D-Conn.) could have an opportunity to chair the Senate Foreign Relations Committee with the election of Sen. Joe Biden (D-Del.) as vice president. The second ranking Democrat on the Banking Committee is Sen. Tim Johnson (S.D.) who just won re-election.