Banks Rush to Shape Rescue Plan

Wall Street Journal (09/22/08) P. A3; Williamson, Elizabeth
Financial industry lobbyists want a say in legislation that could provide $700 billion for the federal government to purchase distressed assets and sell them when the market improves, and their efforts could delay the bill's passage. The industry fought to help foreign institutions with significant mortgage exposure in the United States, and the Treasury responded by pushing for a provision to include banks with "significant" U.S. operations. However, the industry is rallying against proposed language to assist homeowners in bankruptcy because it likely would inflate mortgage rates.