[Hostage]

My sense is that Bush had a choice:

Either lose the war in Iraq

or

lose control of the financial system.

When Bush went to Congress to seek authorization to fund the surge, the democrats deal was for him to have hands off their GSEs Fannie and Freddie.

Bush folded on Fannie and Freddie and took the $$$ for the surge.

[TruthWillWin]

I think by the time Bush went to congress for support for the surge it was too late to save Fannie/Freddie.

[okie01]

When Bush went to Congress to seek authorization to fund the surge, the democrats deal was for him to have hands off their GSEs Fannie and Freddie.

The big push to reform Fannie & Freddie took place in 2005. Bush had just won re-election and the surge was still two years away.

It boils down to this: Bush & the GOP-majority Congress tried to reform Fannie & Freddie. And they failed. They didn't have the will to see it through.