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WRAPUP 5-Vote looms in U.S. Congress on housing rescue plan

Wed Jul 23, 2008 12:12am EDT
 
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* White House criticizes Democrats over bill

* Vote planned on House floor on Wednesday

* Administration plan could cost taxpayers $25 billion (Adds Fratto, Adamske, Dodd and Shelby comments, bill details)

By Kevin Drawbaugh

WASHINGTON, July 22 (Reuters) - A major rescue package for the U.S. housing market is scheduled to come to a vote in the House of Representatives on Wednesday, with lawmakers agreeing final language late on Tuesday and congressional analysts putting a $25-billion potential price tag on a new provision.

Designed to bolster Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz), the nation's biggest mortgage companies, the provision drafted by the Bush administration was added to a bill that has been in the works for months.

The overall measure now has wide, bipartisan support in both the House and the Senate, said Massachusetts Democratic Rep. Barney Frank, chief architect of the legislation.

The added provision, proposed by Treasury Secretary Henry Paulson, would give beleaguered Fannie and Freddie access to new, government capital in the form of loans or equity purchases.

The stock prices of both Fannie and Freddie have seesawed wildly in recent days on investor concern about whether the two government-sponsored enterprises, or GSEs, will be able to ride out the worst U.S. housing market slump in decades.  Continued...

 

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