Posted by WDMD on 10/29/08 2:35pm
Msg #268558
Gov't prepares loan modification plan
WASHINGTON (AP) - The government is preparing to unveil a plan as soon as Thursday guaranteeing around $500 billion in loans to troubled borrowers, sources familiar briefed on the matter said.
The government is contemplating using around $50 billion from the recently passed $700 billion financial industry bailout for loan modifications that would lower interest rates for a five year period, said the sources, who declined to be identified because the plan has yet to be made public.
The program would be run by the Federal Deposit Insurance Corp. and could potentially guarantee around 3 million loans. The plan had been scheduled to be announced Wednesday but was pushed back because the details were still being finalized.
The FDIC's chairman, Sheila Bair, said last week that the agency is working "closely and creatively" with the Treasury Department on such a plan, but revealed few details.
Andrew Gray, an FDIC spokesman, said it would be "premature to speculate about any final framework or parameters of a potential program." The Treasury Department could not immediately be reached for comment.
http://www.breitbart.com/article.php?id=D944B6B00&show_article=1&catnum=0
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