Fannie Mae, Freddie Mac Spent Millions on Lobbying

Of course the breahtless reporting on the lobbying efforts of failed or failing Fannie Mae and Freddie Mac, is getting pitched about.

The two companies were set up by federal law as "government-sponsored enterprises" that operate as private companies with profits and stockholders. Critics say they have used their clout and unusual status to create a sort of regulation-free zone around their businesses. When times are good, shareholders and executives of the companies are richly rewarded. When times are bad, as now, taxpayers could be left holding the bag.

"Congress created this problem by creating special rules at Fannie Mae and Freddie Mac and ignored the problem for years," said Sen. Jim DeMint, R-S.C., a sharp critic of what he sees as a looming federal bailout.

Considering the near blindness of Congress to the problems of these institutes, I would say that they did their job, protecting their status despite the problems.