Reply #97: Senate panel probes Fannie, Freddie foundations (illegal lobbying?)

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-08T201211Z_01_N08395346_RTRIDST_0_FINANCIAL-GSES-TAX-UPDATE-2.XML

WASHINGTON, Feb 8 (Reuters) - The U.S. Senate Finance Committee is examining whether Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) abused the tax status of their charitable foundations by using them to skirt campaign finance and lobbying laws, the panel's chairman said on Wednesday.

"I'm concerned that we're seeing more and more charities in general used in the best interests of lobbyists or special interests, and not in the public's interest," Iowa Republican Sen. Charles Grassley said in a statement.

The Senate Finance Committee has been conducting a broad review to make sure that charitable dollars are being used for the intended purpose and whether non-profit groups fully warrant their special tax-exempt purpose, the statement said.

"My committee is reviewing this matter to gain a better understanding of the relationship between Fannie Mae and Freddie Mac and their charitable foundations," he said.

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