WASHINGTON (Reuters) - Dozens of members of the U.S. Congress, including presidential candidate John McCain, had investments last year in Fannie Mae and Freddie Mac, possibly putting a keen edge on their interest in the companies' troubles, a watchdog group said on Wednesday.

Twenty-eight legislators had between $598,100 and $1.7 million of their own money invested in Fannie and Freddie in 2007, the latest period for which financial disclosure forms are available, said the Center for Responsive Politics.

Republican Arizona Sen. McCain "reported having up to $10,000 invested in the two companies -- up to $9,000 worth in bonds and up to $1,000 worth of stocks," said the nonpartisan center in a report on its Web site at www.opensecrets.org.

Lawmakers who were invested in the companies may have sold off their holdings in the last eight months as the companies' fortunes declined precipitously. Disclosure reports for 2008 are not yet available, the center said.

On Sunday, the federal government seized control of Fannie and Freddie and placed them under federal conservatorship, virtually wiping out investors in their stock.

Fannie shares on Wednesday were off 23 percent at 74 cents each in New York Stock Exchange trading, down from a trailing 52-week high of $68.60, while Freddie shares were off 25 percent at 66 cents each versus a 52-week high of $64.25.

Twelve members of Congress owned between $60,800 and $246,700 of the now almost-worthless stock, said the center.

Seventeen members of Congress reported holding bonds in 2007 in at least one of the companies worth between $537,400 and $1.5 million in total, said the report.

Lawmakers with investments last year included New York Democratic Sen. Charles Schumer, Wyoming Republican Sen. Mike Enzi, New York Democratic Rep. Carolyn McCarthy and Florida Democratic Rep. Ron Klein, the center said.

Schumer and Enzi are senior members of the Senate Banking Committee, which handled legislation earlier this year that empowered Treasury Secretary Henry Paulson to place Fannie and Freddie under conservatorship.

"Senator Enzi inherited those bonds when his mother recently passed away. He did not purchase them on his own. He has voted against the bailout every step of the way," said Enzi spokeswoman Elly Pickett.

McCarthy and Klein are members of the House of Representatives Financial Services Committee, which also handled the legislation aimed broadly at rescuing the companies and shoring up the troubled American housing market.

California Democratic Rep. Mary Bono held bonds last year in the companies worth between $126,050 and $365,000, "making her investments in Freddie Mac and Fannie Mae more valuable than those of any other member of Congress," the center said.

Lawmakers normally disclose their personal finances in ranges, not in exact amounts, on annual disclosure forms.

Spokespersons for McCain, Schumer and Bono could not immediately be reached for comment. A McCarthy spokesman said he did not yet have enough information to comment. A spokeswoman for Klein said she would look into the matter.

McCain and running mateGov. Sarah Palin of Alaska wrote earlier this week in an opinion column in The Wall Street Journal that, if elected, they would ensure that Fannie and Freddie were permanently restructured and downsized.

Democratic presidential nomineeSen. Barack Obama of Illinois called the takeover a necessary move and said he'd be reviewing the details of the plan and monitoring its impact.

(Reporting by Kevin Drawbaugh; Editing by Jonathan Oatis)

  Add comment

Name:
E-Mail:
Comment:
Enter code: