Barney Frank: 'Abolish' Fannie Mae, failed home lender

“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," US Rep. Barney Frank, D-Mass., head of the House banking committee and a longtime Fannie-Freddie apologist, said in Congress today. 

The government-backed companies lost billions pushing banks and investors to subsidize homebuilders and lenders by financing first-time homeowners who, it turned out, couldn't afford payments. Frank cheered them on, but now he wants something different.  Bloomberg story here.

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