The House of Representatives, has moved to approve the President's plan to rescue Fannie Mae and Freddie Mac, but intend to tie it to almost $4 billion in grants to help neighborhoods highest hit by foreclosures. This is part of a broad housing package, but President Bush has threatened to veto the bill if it includes the neighborhood aid. It will be interesting to see what happens in what is becoming a partisan battle. Democrats argue that the money will prevent urban blight, but the Bush administration calls it a bailout for lenders who caused the problem in the first place. With the FBI investigating the possibility of loan fraud in the now defunct IndyMac Bank, the situation should be in headlines for some time to come.
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