February 23, 2006 | Read Time: 1 minute
Editor’s note: This article was revised from the version that appeared in the print edition because of updated information provided by the Fannie Mae Foundation.
The Senate Finance Committee is trying to determine whether Fannie Mae and Freddie Mac, government-sponsored companies that were created to establish a market for secondary mortgages, may have improperly used their foundations to skirt campaign-finance and lobbying laws.
“My committee is reviewing this matter to gain a better understanding of the relationship between Fannie Mae and Freddie Mac and their charitable foundations,” said Sen. Charles E. Grassley, the Iowa Republican who is the committee’s chairman. “I’m concerned that we are seeing more and more charities in general used in the best interests of lobbyists or special interests and not the public’s interest.”
Officials of Fannie Mae and Freddie Mac pledged to work with Senator Grassley.
Cindy Yeast, a spokeswoman for the Fannie Mae Foundation, said her organization “will cooperate fully with Senator Grassley and the committee to provide any information that might be helpful as they conduct their review.”
Freddie Mac has done nothing wrong, said Shawn Flaherty, a spokeswoman for the organization. “We’re very proud of the work of our foundation,” she said.
The Senate Finance Committee is also interested in the charitable contributions of executives at Fannie Mae and Freddie Mac, according to The Wall Street Journal, to see if any contributions supported personal charities and pet projects of lawmakers and their families.
