Referral Dashes Hopes of Early GSE Reform Vote

Republican leaders have referred the GSE regulatory reform bill to the House Judiciary Committee -- dashing any hopes that the House will get a chance to vote on the bill before the August recess.The House Financial Services Committee passed the government-sponsored enterprise bill (H.R. 1461) on May 25 by a 65-5 vote. But the legislation has run into a series of obstacles over the past two months. Now the Judiciary Committee has asserted jurisdiction over sections of the bill that deal with enforcement powers and the penalties the new regulator can levy against Fannie Mae and Freddie Mae and their officers and directors. The Judiciary Committee has until Sept. 16 to complete its review of the bill. A Judiciary Committee spokesman said the bill deals with numerous provisions within that committee's jurisdiction, such as criminal penalties, administrative law and bankruptcy provisions, and civil cause of action. "Because the committee is busy the remainder of this month working on the Patriot Act, and Congress will be out of session the month of August, it is unlikely we would schedule any committee action on the legislation before next September," the spokesman said.