Kevin Hassett points out that an effort was made to reform Fannie and Freddie in which regulation would have been enhanced (remember that the lack of regulation is supposedly what brought about this crisis) and Fannie and Freddie would no longer have been able to engage in risky investments.
The bill died because of Democratic opposition. Note as well that one of the three co-sponsors of the bill was none other than John McCain.
Gosh, I hope that this comes out in the debate this Friday between McCain and Obama. I mean, we are supposed to be talking issues, right?