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Senate Banking Committee Chair Richard Shelby’s (R.-Ala.) declaration on Wednesday that Fannie Mae and Freddie Mac will likely remain in U.S. conservatorship shifts the task of reducing taxpayer mortgage risk mostly to Mel Watt, director of the Federal Housing Finance Agency, Bloomberg News reported yesterday. Shelby snuffed out any chance that Congress would overhaul the $11 trillion housing-finance system in the 114th Congress. President Barack Obama’s insistence on a continued government role in supporting the housing market puts him and fellow Democrats at loggerheads with the powerful banking chairman. That increases pressure on Watt, director of the Federal Housing Finance Agency, to accelerate regulatory efforts to remake Fannie Mae and Freddie Mac — under rules of a crisis-era conservatorship that’s heading into a seventh year.

The Securities and Exchange Commission faces new pressure from Congress to make it harder for lawbreaking companies to hold on to important privileges that help them raise money in the markets, the New York Times DealBook blog reported today. Rep. Maxine Waters (D-Calif.) is set to introduce legislation today that takes aim at how the SEC grants the privileges. The announcement will coincide with the appearance today of Mary Jo White, the SEC’s chairwoman, before the House Financial Services Committee, where Waters is the leading Democratic member. When a company is found to have broken securities laws, the SEC can disqualify it from issuing certain types of securities, which can affect how the firm raises money and impinge on client activities. The firms, however, typically request waivers from these disqualifications — and the agency has often granted them.

The West Virginia Senate on Friday passed Senate Bill 411, which creates the Asbestos Bankruptcy Trust Claims Transparency Act and the Asbestos and Silica Claims Priorities Act, the Huntington (W. Va.) News reported on Saturday. The bill, which was sponsored by Senator Tom Takubo (R) establishes legal standards and procedures for the handling of certain asbestos and silica claims. Additionally, the bill establishes medical criteria procedures, statute of limitations standards, and requires disclosure of existing and potential asbestos bankruptcy trust claims. “As a pulmonary doctor, I’m pleased that the Senate voted today with full bipartisan support to protect funds for West Virginians who are affected by asbestos-related injuries,” Senator Takubo said. “We must ensure funds are healthy five to 10 years from now to help pay for medical bills and family expenses, and this legislation will allow us to do that.”