Leading Republican lawmakers are pushing an amendment that would wind down the government controlled mortgage finance giants Fannie Mae and Freddie Mac , as the Senate resumed debate on Monday on legislation to overhaul financial regulation. On Monday, it was reported that it lost $11.5 billion in the first three months of the year and needed $8.4 billion from taxpayers to stay afloat.

Late last year, Obama administration pledged unlimited backing democratic lawmakers have often defended the companies’ role in the housing market and had been showered with campaign cash. The Senate banking committee’s chairman, Christopher J. Dodd, called the Republican amendment “reckless” and “poorly thought out” saying it would shutter Fannie and Freddie without offering a replacement. McCain said “Fannie Mae and Freddie Mac are synonymous with mismanagement and waste and have become the face of too big to fail. The time has come to end Fannie Mae and Freddie Mac's taxpayer-backed free ride and require them to operate on a level playing field.” , Fannie Chief Executive Michael Williams said “Promoting sustainable homeownership and maintaining ready access to liquidity are our guiding principles in serving the residential markets. The strong credit characteristics of our acquisitions during the quarter are evidence that we continue to strike an appropriate balance in providing liquidity while also applying the lessons of the recent credit cycle”.

The new disclosures suggest Fannie’s balance sheet each quarter presents one balance sheet complied under standard accounting rules and another using estimated market values. Fannie’s equity under the market value approach , of what id left after subtracting liabilities from assets which was minus $145 billion at the end of March , far worse than the minus $98.8 billion at the end of 2009.