facebook
twitter
rss
account
search
search
 

Rescue plan hits opposition in Washington

July 16, 2008 at 10:09 AM   |   Comments

| License Photo
WASHINGTON, July 16 (UPI) -- A plan to quickly restore confidence in the two largest U.S. mortgage companies has slowed amid bipartisan criticism, sources said.

The U.S. Treasury Department and the White House have lobbied to allow the government to extend loans and buy equity in the Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association.

After earlier signals the plan would find enough support, critics of the plan spoke up Tuesday at a Senate hearing, The New York Times reported.

"I fear we're sitting on a financial powder keg," Sen. Richard Shelby, R-Ala., told Treasury Secretary Henry Paulson Jr., who testified on behalf of the plan.

"How is it that we can tell the taxpayers that there is no way you are going to be put on the hook here?" asked Sen. Robert Menendez, D-N.J.

Sen. Jim Bunning, R-Ky., referred to the plan as "socialism" and said "I will do everything I can to stop it."

Criticism of the plan came mostly from Republicans, who urged Democrats to study the plan before rushing to judgment, the Times reported.

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Most Popular
1
Deloitte: App downloads dwindle, 1 in 3 users disinterested
2
AESA radar integrated into new F-16V
3
Iran wants to develop mini-LNG plants
4
Iraq worried by terrorist ties to oil
5
Twitter to remove pictures of deceased on family's request
Trending News
Video
x
Feedback