Rep. Frank to Recommend Replacing Fannie Mae, Freddie Mac

Jan. 22 (Bloomberg) -- Representative Barney Frank said his committee will push to replace Fannie Mae and Freddie Mac, seized by regulators almost 17 months ago, with a different model for U.S. mortgage financing.

"The committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance," Frank, a Massachusetts Democrat and chairman of the House Financial Services Committee, said at a hearing in Washington today. "That's the approach, rather than a piecemeal one."

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