Frank: No 'winks and nods' about Fannie, Freddie guarantees

Rep. Barney Frank (D-Mass.) said Friday that when lawmakers restructure Fannie Mae and Freddie Mac they should not make any "winks and nods" about giving the beleaguered housing giants a taxpayer guarantee.

Frank clarified earlier remarks that suggested he did not believe Fannie and Freddie bondholders had the same protection as those who hold U.S. government debt. That raised concerns that bondholders would face losses, even as the two firms are in government conservatorship and have received tens of billions of dollars in taxpayer support.

"I support the intention of the Treasury to stand fully behind the terms of its December 24 statement with regard to Fannie and Freddie debt," Frank said in a statement later on Friday. "It is also the case in going forward, as we restructure housing finance, we will make sure that there are no implicit guarantees, hints, suggestions, or winks and nods. We will be explicit about what is and is not an obligation of the federal government."