$700 Billion bailout to incorporate assistance for homeowners

Differences still remain between the Bush Administration and Democrats in Congress. The Democrats, who control Congress, are requesting that the government be allowed to oversee the process and caps on the salary of top executives in the corporations that will be helped by the bail out.

Barney Frank, House Financial Services Committee Chairman, made a breakthrough in the negotiation process yesterday as converted Treasury Secretary Henry Paulson to the idea that a government bailout should also provide a way for foreclosures to be prevented, according to an aide of Mr. Frank.

According the Frank, preventing foreclosures would be possible as the government used its “authority as investor” by encouraging mortgage providers to curtail foreclosures with already existing federal programs. With the government acting as an investor, renters would then be allowed to stay in home facing foreclosure and it would become mandatory for federal agencies to report every 90 days on their individual efforts to turn dire loans into successful ones.