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GSEs not part of proposed overhaul of financial regulation

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Fannie Mae and Freddie Mac are likely to remain in government conservatorship until at least next year, the Obama administration indicated today in unveiling a sweeping plan to overhaul the financial regulatory system. The mortgage giants' "continued stability and strength" is needed during "these difficult financial times," the administration said in a report outlining proposed changes to the regulatory system. The proposed changes, which will require congressional approval, would include a new financial services oversight council to identify emerging systemic risks and a new national bank supervisor to oversee all federally chartered banks. In addition, the plan would eliminate the federal thrift charter and other loopholes that the administration says allowed some depository institutions to avoid bank holding-company regulation by the Federal Reserve. The plan would also give the Federal Reserve new authority to supervise all firms that might pose a ...