Rep. Barney Frank (D-Mass.) questions whether investments in Fannie Mae and Freddie Mac are, or should be, as risk free as they are touted to be. Frank, chairman of the House Financial Services Committee, made his comment during discussions about how the federal government could overhaul the lenders. Despite assurances from federal officials that investing in the government-sponsored entities was as safe as lending to the government itself, Frank said he would “absolutely” consider require GSE investor to take losses, stressing that in restructuring the companies he wants “to preserve the right to give people haircuts.”

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