If the compromise measure is approved, the Treasury secretary will extend the government's reach into the one area of housing finance where it has thus far tread only lightly, the market for the kind of exotic financial instruments that Wall Street built atop the once-simple mortgage.
No company or other government agency would have anything close to so large a portfolio of mortgages and mortgage-related securities -- and none ever has in American history.
While House and Senate leaders of both parties confidently predicted swift approval of the compromise measure Sunday, rank-and-file lawmakers were not quite as sure of the final outcome.
"I think it's up in the air," said Rep. Christopher Shays (R-Conn.), who described himself as a "lean 'yes,' but not a committed 'yes.' "
He and many other lawmakers fear the political backlash if the plan doesn't work and financial markets continue to spiral downward.
"This is a legacy vote; these are the votes you have to live with for the rest of your life," Shays said.
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peter.gosselin@latimes.com
