A massive housing rescue package passed the Senate on Saturday after President Bush reluctantly dropped his opposition last week. The measure, which provides 300 billion dollars to help save 400,000 homeowners from foreclosure nationwide, is widely regarded as the single most important housing legislation in a generation. Upon closer examination, it appears Congress is actually tossing two lifelines – one to distressed homeowners and one to our best friends, Fannie and Freddie.

The special status of Fannie and Freddie, both as government-sponsored agencies and shareholder-owned companies, entitles them to strong government backing – AKA taxpayer bailout – in case things turn sour. But records show our two buddies have long acted in the interest of shareholders, not stakeholders like you and me. The result: taxpayers bear the risk while shareholders enjoy the profits.

Former Rep. Richard Baker (R-LA) revealed the pay schedule of Fannie Mae managers in 2004, noting that top officials at the company all made $1 million or more annually and that bonuses were paid out of $245 million over the course of 5 years. When Rep. Baker tried to push forward reforms, his efforts were unsurprisingly squashed by the entities’ powerful political allies.

Just to give a glimpse of their political clout: in 2008 alone, Fannie has given more than $900,000 to candidates and political parties, while Freddie has splurged on gifts topping $475,000. Fannie and Freddie sure know how to make their views known when it counts. After their stocks took a nosedive last week, the government took immediate action to rescue them by adding an extra lifeline to the proposed housing bill. Officials warned that their failure would wreck havoc in the financial and housing markets. Probably true, but will Fannie and Freddie have learned the lesson after this debacle?

The good news is the latest housing bill is intended to wring in the powers of the two mortgage giants; further government oversight is also expected. But the question remains as to how such regulation will be realized given Fannie and Freddie’s political clout on Capitol Hill.