Senate’s Fannie Mae Wind-Down Plan Faces High Hurdles
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A bipartisan U.S. Senate plan to dismantle Fannie Mae and Freddie Mac must clear many political hurdles in a short time if it is to become law, leaving narrow chances of a housing-finance overhaul being enacted this year.
Senate Banking Committee leaders said the proposal, which they plan to release later this week, would replace the two U.S.-owned mortgage financiers with government bond insurance that would kick in only after private capital suffered severe losses.