Sides Dig In on Fannie, Freddie

Posted July 17, 2008 at 9:44am

House Republicans voiced concerns with a White House-proposed plan to backstop mortgage giants Fannie Mae and Freddie Mac, but outside of those discussions Wednesday evening with Treasury Secretary Henry Paulson, few minds were changed, aides said.

A GOP source in the meeting, which lasted about 40 minutes, said Paulson had “a pretty good grasp of where people are” and opened the meeting by acknowledging that some lawmakers will always have concerns with the proposal.

But at the same time, he was “not a very persuasive guy,” said the aide.

Members aired concerns ranging from philosophical problems with a government bailout to problems with rewarding risky behavior, said the source.