It seems that the Federal Reserve is going to be throwing a lifeline to Fannie and Freddie.
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The plan must still be approved by Congress (which could mean that this may take awhile), but the Fed will not only serve as the lender of last resort to the ailing mortgage buyers but will also play a consult type role in their regulation.
The news this week comes four months after the Fed facilitated JPMorgan Chase’s $30 billion buyout of Bear Stearns and the Bush administration’s blueprint to overhaul the U.S. financial regulatory system, granting the Fed even more power. (isn’t that scary)

By coincidence, the central bank on Monday approved a new rule designed to protect consumers from deceptive lending practices, including advertising practices that say interest rates are fixed when in fact they’re not. It applies to all mortgage lenders, not just those under the Fed’s control.
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I my opinion, It looks like the Fed are trying to fixed everything that they’ve been laid-back on for the last few years.
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Starting tomorrow, Federal Reserve Chairman Ben Bernanke begins two days of testimony on Capitol Hill as he delivers his semiannual economic report to lawmakers. He’ll talk about the growing threat of inflation, the government’s response to the Fannie and Freddie meltdown, the Fed’s recent actions to curb irresponsible lending and the overall economic outlook.

I don’t expect him to say the Federal Reserve is gaining too much authority

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