QUOTE (Financial Times)
Congress seeks compromise on rescue plan for US lenders
By James Politi in Washington
Published: July 18 2008 03:00 | Last updated: July 18 2008 03:00
Members of Congress and the US administration held an intense round of talks on Wednesday over the rescue plan for Fannie Mae and Freddie Mac as they tried to forge a compromise that would lead to its approval as early as next week.
A proposal by Hank Paulson, the US Treasury secretary, over the weekend to give the Treasury unlimited power to increase its credit line to the mortgage companies and invest in their equity has been met with some scepticism in Congress, particularly among Republicans worried about the potential risk to taxpayers.
One congressional aide said that Barney Frank, the Democratic chairman of the House financial services committee, who has supported Mr Paulson's proposal, was tentatively planning a vote on the plan in the House next Wednesday.
Although that is later than initially envisaged, it is still in time for it to be approved in the Senate and then sent to President George W. Bush for his signature by the end of next week, the aide said.
Read More in Financial Times
By James Politi in Washington
Published: July 18 2008 03:00 | Last updated: July 18 2008 03:00
Members of Congress and the US administration held an intense round of talks on Wednesday over the rescue plan for Fannie Mae and Freddie Mac as they tried to forge a compromise that would lead to its approval as early as next week.
A proposal by Hank Paulson, the US Treasury secretary, over the weekend to give the Treasury unlimited power to increase its credit line to the mortgage companies and invest in their equity has been met with some scepticism in Congress, particularly among Republicans worried about the potential risk to taxpayers.
One congressional aide said that Barney Frank, the Democratic chairman of the House financial services committee, who has supported Mr Paulson's proposal, was tentatively planning a vote on the plan in the House next Wednesday.
Although that is later than initially envisaged, it is still in time for it to be approved in the Senate and then sent to President George W. Bush for his signature by the end of next week, the aide said.
Read More in Financial Times