Frank to Paulson: Help homeowners

WASHINGTON, Nov. 18 (UPI) -- U.S. Rep. Barney Frank, D-Mass., Tuesday took U.S. Treasury Secretary Henry Paulson to task for the government's failure to buy up problem mortgages.

During a hearing of the U.S. House of Representatives Committee on Financial Services, Frank, who is the chairman of the panel, noted recently passed bailout legislation specifically authorized buying up such problem assets from financial institutions.

Frank's remarks followed testimony from Paulson, who said the government had decided against directly buying such mortgages. Frank was particularly incensed over the $150 billion spent to bail out American Insurance Group, saying with that in mind, he didn't understand why $24 billion couldn't be found to help homeowners.

"The bill couldn't have been clearer," Frank said, adding that "we have not been as successful as we need to be" in reducing the number of foreclosures.

Paulson said he is looking for ways to help homeowners but at the same time the money needs to be invested in a prudent manner.