Proponents of GSE reform continue to be tantalized by signs of possible movement on a legislative compromise, only to be doused by a subsequent cold shower. Last week, Sen. Richard Shelby, R-AL, chairman of the Senate Banking, Housing and Urban Affairs Committee, seemed to open the door to a compromise when he expressed a willingness to let a reform measure move forward without strict limits on the retained portfolios of Fannie Mae and Freddie Mac, as long as the risks they represent are addressed somehow...