3 of 7
Treasury Secretary Henry Paulson wants stronger oversight of Freddie and Fannie.
Fannie and Freddie defenders argue that the mortgage giants are complying with the capital requirements enforced by their key regulator, the Office of Federal Housing Enterprise Oversight (OFHEO). These claims, rather than shore up confidence, have added to the general distrust of both companies and its Beltway backers.

The capital guidelines "were enacted when we all believed residential real estate had low risk," Westwood Capital managing director Len Blum wrote last week. He called the requirements "preposterous" given the current market. Congressional Democrats and Republicans agree on the need for a stronger watchdog: the housing bill wending through Congress would strengthen the companies' regulator, reflecting an oft-stated objective of Treasury Secretary Henry Paulson. How much teeth that law would have is not clear.

NEXT: Leadership (Part 1)
Last updated July 18 2008: 4:35 PM ET
More Galleries
5 biggest share buybacks of 2014 Stock repurchases are booming. These five companies are ready to spend over $79 billion on buybacks. More
10 horrifying corporate mascots McDonald's Happy is part of a long lineage of creatures great and small that shill for products and mortify consumers. Mr. Mucus, anyone? More
5 best cities to launch a career The top spots in the U.S. for new grads to land a job -- and actually enjoy life -- according to financial site WalletHub. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.