New Plan for Fannie, Freddie

Three years later, we’re still dealing with the fallout from the financial crisis. Two stories Wednesday make that clear: First, the White House could release an overdue report about what to do with Fannie Mae and Freddie Mac as soon as Friday. Some White House advisers and many Republicans favor simply allowing the private sector to completely replace the government-backed mortgage companies, winding them down by first capping the value of mortgages they buy and then increasing the fees they charge. The second financial-crisis news item: the SEC is considering a move that will scale back the markets’ reliance on credit agencies, whose poor ratings are partially to blame for the financial crisis.