Thursday, March 20, 2008

U.S. Treasury Rejects Democrats' Calls for Housing Bailout

The Shrub disposal rejected
suggestions that it is negotiating with congressional Democrats
on legislative proposals to utilize authorities finances to ease a
worsening U.S. lodging recession.

Senator , a New House Of York Democrat, today said in
a Bloomberg Television interview that Treasury Secretary is ''sympathetic'' to a proposal by Senator and Congressman to allow the authorities insure
refinanced mortgages. Dodd two years ago said ''there's A greater
receptivity'' from the administration.

A Treasury functionary and a White Person House spokesman both denied
that the disposal is heating to proposals in Congress. Some lawmakers desire Shrub to dunk into authorities caissons to help
the and travel beyond Paulson's voluntary agreement
among mortgage servicers to assist struggling householders remake loan

''Let Maine be very clear about this issue,'' Assistant
Treasury Secretary said in a Bloomberg Television
interview. ''We have got the right program in place. We don't desire to
see things that via media that or sabotage that effort.''

Democrats including Frank, president of the House Financial
Services Committee, and Schumer have got suggested that while
Paulson is willing to see their proposals, he is being
hampered by Bush's opposition to a more than militant approach.

''The White Person House itself still have these ideological
handcuffs, saying no authorities involvement,'' Schumer said.

Bush disposal functionaries denied that, saying today
there is no split between Shrub and Paulson and that there
weren't negotiation with Frank and Dodd over their plans.

'More Injury Than Good'

''No 1 is negotiating on new legislative proposals on
housing,'' White Person House spokesman said in an e-mailed
statement. ''While we never govern out new ideas, we experience very
strongly that any further actions should be responsible and
avoid doing more than injury than good.''

Paulson have repeatedly said he isn't interested in using
public finances or authorities warrants to stem the rush in
mortgage foreclosures that are at the root of the financial
crisis. Shrub said on March 15 that he wanted to avoid ''bad
policy decisions'' that would make more than injury than good.

''We're not going to back up actions that would protract the
correction in housing, usage taxpayer dollars to bail out
speculators, or would take to higher involvement rates,'' Fratto

The Treasury head have backed voluntary agreements among
lenders to work with struggling borrowers renegociate place loans
and freezing involvement rates on some subprime loans.

FHA Backing

Under Frank and Dodd's plan, announced last week, the
Federal Housing Administration would see refinanced mortgages
after loaners cut down the loan principal to do payments more
affordable to homeowners.

Ryan today said United States Congress instead should concentrate on passing
legislation that would heighten the function of the Federal Housing Administration and toughen
oversight of Freddie Macintosh and Fannie Mae, the biggest beginning of
U.S. place financing.

''There is an of import function for United States United States Congress to play and we
need to see Congress move forward with statute law to help
reform the Federal Housing Administration as well as the GSEs,'' he said.

Former Treasury Secretary , in a telephone
interview today, said all options should be on the table.

''I wouldn't state using public finances is necessary, but I
think it's going to have got to be considered,'' Rubin said. ''Obviously there's a great trade of strain. Policy shapers ought
to be looking at everything.''

To reach the newsman on this story:
in American Capital at
in New House Of York at

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