Frank: House to put conditions on bailout

[Judi Lynn]

Source: MSNBC

Frank: House to put conditions on bailout
Key lawmaker says $50 billion of TARP must go to struggling homeowners
updated 1 hour, 34 minutes ago

WASHINGTON - A key lawmaker said Friday he expects the House to act soon to impose conditions on any new release of the second $350 billion in federal bailout funds, with a mandate that at least $50 billion go to help struggling borrowers avoid foreclosure.

Rep. Barney Frank, who heads the House Financial Services Committee, issued an outline of his proposal to attach strings to spending of the money by either the Bush administration or the incoming Obama government. It also slaps strict limits on executive compensation — both for companies receiving new federal money and those that already have — including a ban on any bonuses for the 25 highest paid executives.

The banning of some bonuses, and relinquishing of private jets, would be applied to all banks and other institutions receiving bailout money, as they were in the loan agreements with General Motors Corp. and Chrysler LLC last month.

The new conditions also would include a better method for the government to track whether banks are using the money to boost lending.

"We will trust but verify," Frank told reporters on Capitol Hill.


Read more: http://www.msnbc.msn.com/id/28577991/

[sallyseven]

1. Love you Barney

[penguin7]

2. So like where were the conditions on the first

350 billion.

This boondoggle is a complete waste of resources.

[Deja Q]

3. A good start, but wasn't he the one who said Freddie and Fannie were sound in 2004?

What was different between then and now? Was he made a scapegoat by Republicans?

[sutz12]

4. Better late than never, I guess....but sheesh...

the horse has long left this barn.

:shrug:

[NeoConsSuck]

5. Not good enough

he should demand the banks return the money. It was given to the banks under the premise that they would lend it out, which they haven't.

[w4rma]

6. Don't you dare pass that bill before the 20th, Sen Frank. That guy is in bed with the big banks.(nt)