Brian McMorris who is an active commenter on this website has put on his website a very interesting article from Barrons about the endgame for Fannie and Freddie.

Separately, I heard a rumor that the Bush administration was finagling to have Fannie and Freddie regulated by (under?) the Federal Reserve and that understanding was one reason the Administration signed off on the Housing Bill bailout for Fannie and Freddie.