A Senate panel on Thursday approved legislation to wind down Fannie Mae and Freddie Mac and redesign the U.S. mortgage finance system, but sparse support among Democrats means the measure is unlikely to make it into law.
The Senate Banking Committee approved the bill by a 13-9 vote. Senate aides have said Senate Majority Leader Harry Reid was unlikely to bring the measure up on the Senate floor unless it received wide support among his fellow Democrats.
The vote is a major setback for the Obama administration, which helped craft the legislation and worked to build broad support for it, and it likely marks the final legislative action on housing finance reform this year.
Not enough Dem's Support. Will not make into law.
" The vote is a major setback for the Obama administration " well not really. It was all just a big game on Obama's part to make it look like he was working with the Republicans. All along he wanted to preserve Fannie and Freddie who were invented by his hero FDR in the 1950's. He clearly supports what Watt said on Tuesday. We are golden.