Frank: Democrats, Treasury Agree on Bailout Plan Basics

The Post's Lori Montgomery reports this latest update from the Capitol:

Rep. Barney Frank (D-Mass), chairman of the House Financial Services Committee, says House and Senate Democrats have agreed on the basic principles of a bailout plan. In particular, both sides agree to the creation of an oversight board and foreclosure mitigation for some distressed homeowners.

Frank said Treasury has signed off on the plan as well. However, Frank said there remain sticking points on the plan between Democrats on the Hill and the administration, particularly over executive compensation and giving bankruptcy judges authority to modify some mortgages.

September 22, 2008; 3:19 PM ET  | Category:  business
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Posted by: linda521 | September 22, 2008 3:47 PM

The bailout of Wall Street proposed by the Bush Administration is daylight theft.

When are Americans going to wise up to an administration that habitually steals from the middle class to give to its wealthy cronies.

If a bail out is really is essential to resurrect the financial system from the grave, then fairness requires that for every $1 given to rich Wall Street lenders, $1 must be provided to delinquent and at-risk Main Street borrowers.

Either the nation unites to bail out the row boats with the yachts or the whole fleet should sink together. It will be interesting wo see whether fat cats can swim as well as experienced ordinary Americans who have been treading water for 8 years.

$1.4 trillion for both borrowers and lenders, or nothing for anyone.

Posted by: Ken Bley | September 22, 2008 3:51 PM

Stick to your guns, Barney. Make them agree to the executive comp rules.

Posted by: BSquare | September 22, 2008 3:57 PM

INSIST on BOTH limitations of compensation AND the ability to adjust existing mortgages!!!

Posted by: providence | September 22, 2008 4:09 PM

barney: follow the money to the root cause...eliminate the FASB 157 rule requiring MARK TO MARKET accounting. it needs to be replaced with a discounted cash flow policy...problem can be solved without trashing free market capitalism

Posted by: wally | September 22, 2008 4:27 PM

Why not help struggling homeowners who have jobs and who live in their house/primary resident the opportunity to rework their loans to a more manageable loan than to foreclose and have the houses locked up. Let's get real the unemployment rates under these "HARD" economic times will not yield many new buyers or renters of "houses". It is a bad situation but let's use some common sense here, because truth many houses were sold using inflated appraisals.

Posted by: Diana | September 22, 2008 4:28 PM

Ditto on FASB 157. The rule went into affect November 2007 and it is the equivalent of dropping a brick wall in front of a moving train. Repeal this rule and no bailout is needed.

Posted by: Will James | September 24, 2008 10:35 AM

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