Bunning takes on past contributor over mortgage bill: 'I thought I woke up in France'

U.S. Sen. Jim Bunning: Getty Images Photo During a Senate Banking committee meeting, U.S. Sen. Jim Bunning (R-Southgate) upped the ante in his opposition to legislation that would give the federal Treasury the ability to invest directly into mortgage lenders Fannie Mae and Freddie Mac - institutions that previously supported Bunning's campaigns.

"When I picked up my newspaper yesterday, I thought I woke up in France. But, no, it turned out it was socialism here in the United States and very -- going well," said Bunning of the legislation, according to a Washington Post report.

The newest plan to help the two mortgage companies is supported by President Bush and has a chief proponent in Treasury Secretary Henry Paulson.

The legislation would remove caps on how much the Treasury could lend to the two companies. The Treasury would also be allowed to purchase equities in the firms.

Paulson argued the legislation was a safety measure to boost confidence in Fannie Mae and Freddie Mac, not a reaction to "any sudden deterioration" with the firms - though he noted "recent developments" encouraged supporters to act on the legislation now.

Amid concerns that losses in the mortgage market may financially hinder the companies, stock shares in the two have plummeted 70% in the last month.

Bunning derided the legislative solution to the problem before the Banking Committee.

"The Treasury secretary is now asking for a blank check to buy as much Fannie and Freddie debt, or equity, as he wants," said Bunning, according to the Post report.

Bunning targets a past contributor

Bunning's critique of the bailout comes in spite of the fact that he has received campaign help from both Fannie Mae and Freddie Mac in the past.

Since 2004, the Senator has received $8,000 in contributions from the two firms' political action committees, according to FEC reports on file with Opensecrets.org.

Bunning next faces re-election to the Senate in 2010.

By way of comparison, Kentucky's other senator - Mitch McConnell (R-Louisville) - collected $20,000 from the same PACs since 2006.

Fannie Mae and Freddie Mac's PACs give extensitvely to candidates from both parties in both houses of Congress. Fannie Mae's PAC has given $174,400 to 46 members of the U.S. Senate in the 2008 cycle, with that amount split almost evenly between Democrats and Republicans.

Freddie Mac's PAC gave $91,999 to 30 different members of the Senate this cycle - including $1,000 to Bunning.

Bunning has been unreserved in his criticism of many of the legislative solutions to struggles in the mortgage industry the Senate has considered this year, despite these campaign links to mortgage companies.

Last month, he called for an investigation into whether Countrywide Financial was inordinately benefitting from a housing bill Bunning strongly opposed.

Bunning also spoke out against The Foreclosure Prevention Act, arguing it did not prevent mortgage foreclosures and only bailed out banks and homebuilders.

The French connection

While the target of Bunning's criticism is noteworthy, the substance of it also connects to a recent trend among Kentucky Republicans: arguing that disfavored policy is reminiscent of government practice in France.

While Bunning targeted the Freddie/Fannie legislation as particularly French, his colleague, Mitch McConnell, derided the "Democratic agenda" as an effort to transform the United States into France during a May interview.

In April, McConnell's wife, Secretary of Labor Elaine Chao, also argued that continued Democratic rule would result in the "Europeanization" of American labor law.

"If [Democrats] have the House, the Senate, and the Presidency as they expect and hope for in November of 2008, our country will be more like France," said Chao.