Agency strategy to head off Baker Bill gives boost to $7bn Freddie Mac deal

19 Oct 2000

Fannie Mae and Freddie Mac scored a victory in their battle to head off legislation aimed at undermining their government links yesterday (Thursday), when plans by the two government sponsored agencies (GSEs) to subject themselves to greater transparency and scrutiny from the market place resulted in tightening of agency spreads.

Since March, a bill proposed by Republican representative Richard Baker aimed at cutting the agencies' lines of credit with the US Treasury has cast a shadow over the agency market. Baker had also argued for greater regulation of the activities of Fannie Mae and Freddie ...

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