President Bush is pressuring Congress to pass the Housing Finance Industry rescue bill. Missouri’s Senators agree one needs to be passed although they’re not comfortable with the word "bailout."
President Bush wants the bill although Congress is likely to send him a provision that will force him to veto the bill. It’s a 600-page bill designed to restore public confidence in Fannie Mae and Freddie Mac, the big secondary market lenders hurt by the tumble of the mortgage market, and cut down foreclosures. Senator McCaskill says Freddie Mac and Fannie Mae are not going to be allowed to go under.
But she says new regulations are needed to make sure they need to be more respectful of the public in the way they run their operations. Bond says Fannie Mae and Freddie Mac do not need a bailout. He suggests they issue stock with 15 percent dividends to raise needed money, with the stock bought back before they can continue operations.
He and McCaskill agree that the government should not allow any federal funds to be used to pay the high salaries of those who’ve gotten these institutions in big financial trouble.