Financial Reform

Frank: Abolish Fannie Mae And Freddie Mac

Brian Beutler | August 17, 2010, 8:47PM

Rep. Barney Frank (D-MA)

House Financial Services Committee Chairman Barney Frank is calling for the abolition of Fannie Mae and Freddie Mac, the government-sponsored enterprises with a public mandate to boost home ownership, and which were taken into conservatorship during the 2008 financial crisis.

In an appearance on Fox Business Network tonight, Frank said they should be replaced with new programs to support affordable rental housing.

"I think they should be abolished," Frank said. "The only question is what do you put in their place. This is a situation where given the importance they had come to play in housing, you can't tear down the old jail until you build a new one. And that's a process that we've started."

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