Wed, Jun 26, 2013 11:07 AM EDT 1:16
A bipartisan group of senators proposed an overhaul to the housing finance system that would gradually eliminate Fannie Mae and Freddie Mac, the two government-sponsored mortgage guarantee giants, and shift more mortgage and credit risk to the private sector. Eight lawmakers from the Senate Banking Committee ? four Democrats and four Republicans ? said their legislation would protect taxpayers from bearing the costs of housing market downturns, as occurred in the 2008 financial crisis when Fannie and Freddie were nationalized and bailed out with $187 billion in taxpayer-funded loans. For-every-pair-of-shoes-it-sells, TOMS-Shoes-gives away another pair to someone in need. but some critics have called this a marketing ploy, one that makes millions by ?monetizing white guilt? U.S. economic growth was more tepid than previously estimated in the first quarter, held back by a moderate pace of consumer spending, weak business investment and declining exports. In its final estimate, the Commerce Department said that gross domestic product expanded at a 1.8 percent annual rate.