House wants Fannie, Freddie included in Wall Street bill wind-down title

House lawmakers are pushing hard to include Fannie Mae and Freddie Mac in the Wall Street overhaul bill's definition of companies covered by a new system to wind down failing firms.

In a series of debates between the House and the Senate, lawmakers on the House side are insisting that the two mortgage giants fall under the list of covered financial companies that could be put through a new liquidation system. 

The section of the bill also sets up a system for the Federal Deposit Insurance Corporation (FDIC) to move in as a receiver of troubled companies. The two mortgage giants were bailed out in 2008 and continue to rely on hundreds of billions of dollars in taxpayer aid.

Congressional lawmakers and the Obama administration have not yet detailed new plans for the two companies, and it is unclear what their possible classification as financial companies under this part of the Wall Street bill would mean for their future.

House lawmakers on the conference committee proposed first to add Fannie and Freddie to the list of covered companies. Senators on the committee rejected that push earlier this week.

On Wednesday afternoon, the House side pushed again to include the two firms as part of the list of covered companies.

It was unclear late on Wednesday how the issue would be resolved.

The provision was supported by House Republicans and adopted by the full House side. Rep. Jeb Hensarling (R-Texas) supported the amendment as an effort to treat Fannie and Freddie in similar ways as other financial companies, his spokesman said.

On Thursday, Rep. Barney Frank (D-Mass.) said he was concerned about the impact of the provision, which appeared likely to be removed.

"We have since heard a great deal of distress from our major financial institutions," Frank said. "I think it's a legitimate concern."

Frank said the amendment could lead to perceptions in the market that banks would be on the hook for Fannie and Freddie support.

This post was updated at 9:38 a.m and 10:30 a.m.