November 3, 2010 / 4:35 PM / 7 years ago

Exclusive: Next House banking panel head: liquidate GSEs

1 Min Read

<p>House Financial Services Committee ranking member Spencer Bachus speaks during the Reuters Washington Summit September 23, 2010.Gary Cameron</p>

WASHINGTON (Reuters) - The next head of a key congressional committee overseeing banks and housing finance told Reuters on Wednesday that mortgage giants Fannie Mae and Freddie Mac should be in liquidation, not conservatorship.

With Republicans capturing control of the U.S. House of Representatives in Tuesday's elections, Spencer Bachus is expected to take over the chairmanship of the House Financial Services Committee, replacing Democrat Barney Frank.

In an interview, Bachus put reforming Fannie Mae FNMA.OB and Freddie Mac FMCC.OB at the top of his priorities list.

The two companies were seized by the government at the height of the 2007-2009 financial crisis and are now under direct government management. "They're in a conservatorhip and they really ought to be in a liquidation," Bachus said.

Reporting by Kevin Drawbaugh, Editing by Chizu Nomiyama

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