Saturday, November 15, 2008

FDIC, U.S. Treasury clash on anti-foreclosure plan

REUTERS
Reuters North American News Service

Nov 14, 2008 15:10 EST
By Karey Wutkowski and Patrick Rucker

WASHINGTON (Reuters) - A top U.S. banking regulator unveiled a plan on Friday to prevent about 1.5 million foreclosures, breaking ranks with the Bush administration by demanding bailout funds be diverted from banks to consumers.

The Federal Deposit Insurance Corp said the plan would modify millions of delinquent mortgages and the government would reward participating lenders by sharing the cost of defaults on restructured loans.

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