October 25th, 2008 
admin The Federal Government is working on $40 billion plan to help homeowners refinance their mortgage and avoid foreclosure.
Sheila Bair, chairman of the Federal Deposit Insurance Corp., told the Senate Banking Committee that the government can do more to help homeowners to avoid foreclosure.
“Specifically, the government could establish standards for loan modifications and provide guarantees for loans meeting those standards,” Bair said. The FDIC is working “closely and creatively” with the Treasury Department on such a plan, she said.
First bailout package of $250 billion allows government buy preferred shares directly from banks in return for injected capital. Nine of the largest U.S banks were signed into $125 billion capital infusion. (more…)
Posted in Uncategorized 
Tags: 
