On Thursday afternoon the Senate Banking Committee narrowly approved a bill that strengthens regulation of Freddie Mac and Fannie Mae, further putting into question the fate of the GSEs. This was largely based on an earlier draft legislation brought by the Banking Committee chairman, Sen. Richard Shelby, R-Ala.

The legislation the committee approved - in a 12-9 vote, mostly along party lines and largely based on Sen. Shelby's bill - actually included a revised version of an amendment proposed by Sen. Robert Bennett, R-Utah. This amendment focuses on congressional oversight of a receivership determination. Under the revised version of the bill, the new regulator can appoint a receiver but Congress will be given 45 days to overturn this decision without the ability to filibuster the motion.

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