Paulson wants more oversight for Fannie, Freddie

Treasury Secretary Henry Paulson’s plan to create a new regulatory committee to oversee Fannie Mae and Freddie Mac has stirred concerns. The agency, to be called the Federal Housing Finance Agency, would give Congress less oversight and revoke its right to determine how much capital the government-sponsored mortgage giants must keep as a cushion in case of losses. Critics say Paulson’s plan doesn’t go far enough and favors the companies, which provide financing for about 80 percent of all new U.S. home loans. Paulson said Congress must pass his plan to avoid a slide in confidence in the country’s financial markets. [NYT] and [Bloomberg]