President Bush proposed a new agency to oversee Fannie Mae and Freddie Mac to circumvent precisely this type of crisis. That was in 2003.
Senator McCain expressed his concern about the governing regulatory structure over Fannie and Freddie in 2006.
In 2004, a suit was filed on behalf of Ohio Public Employees Retirement System, the State Teachers Retirement System of Ohio and the Ohio Bureau of Workers' Compensation. Reason: Securities fraud.
Lastly, take a gander at the Fannie Mae/Freddie Mac campaign contribution list! The List covers 1989-2006, yet the #2 guy has not even been in the Senate four years!!!
Franklin Raines [cached version of Wikepedia entry before changes]