White House Accused of Attacking Agencies

Fannie Mae and Freddie Mac are being maligned by the Bush administration in an effort to tighten regulation of the two largest U.S. mortgage-finance companies, 76 Democrats in the House of Representatives said in a letter to the president.

The White House “has turned to attacking” the companies in public statements to “foster negative opinions in the financial markets” and raise their “cost of borrowing,” said the lawmakers, including Democratic leader Nancy Pelosi (D-San Francisco).

A Treasury Department spokeswoman said the administration, rather than trying to increase the cost of funding, “wants to strengthen the American housing finance system by ensuring there is a world-class regulator” for the companies.