Harry Reid, US Senate majority leader, met with Ben Bernanke today to urge him to do more to fight the housing crisis in Nevada, one of the states which saw the greatest run-up in housing prices, and has since seen one of the biggest collapses. The Nevada Senator’s petition to Mr Bernanke comes at a time the Fed chair has it in his interest to listen: it’s still unclear if the Senate will call a vote on the re-confirmation of the “very good firefighter” (Mr Reid’s term).
Meantime, Republicans are looking to spread Main Street’s pain to Wisconsin Ave and Jones Branch Drive. (Alright, so addresses aren’t a metonymy that likely to catch on for GSEs). Spencer Bachus, ranking member of the House financial services committee, and the committee’s Republican leadership have introduced a bill that would slash the $6m in compensation allotted late last year for Fannie and Freddie chief executives to a federal employees. (It would also cut compensation of other executives to similar levels). It’s worth noting that neither of the CEOs were leading the groups during the government takeovers, though Michael J. Williams, Fannie’s chief, had worked at the GSE since 1991.
The Republicans statement is a fun populist read, so here it is. Enjoy. Read more