Niagara Gazette

News Refresh

September 18, 2008

THURSDAY: Schumer to offer banks a deal (2:43 p.m.)

WASHINGTON (AP) — Sen. Charles Schumer plans to offer a broad economic proposal for the government to offer a financial lifeline to those banks that are willing to renegotiate mortgages for those on the brink of losing their homes.

The New York Democrat is an outspoken advocate for the financial industry, since so many of those workers are in his home state. Aides said the senator plans to outline his plan on the Senate floor Thursday afternoon.

Under Schumer’s model, the government would give capital infusions or loans to banks in return for an equity stake, similar to the deal struck with insurance giant AIG earlier this week.

In return, the banks would lift objections to legislation allowing loan modification for homeowners in bankruptcy. Currently, a person in bankruptcy cannot renegotiate the terms of their mortgage, unlike other kinds of debt.

Schumer’s plan is an alternative to another proposal in Congress to create a federal agency to buy up bank debt, shifting potential losses onto U.S. taxpayers. It would be similar to the Resolution Trust Corp., which lawmakers established during the 1980s savings and loan crisis.

1
Text Only | Photo Reprints
News Refresh
Featured Ads
House Ads
AP Video
Obama Hopeful on Ukraine, Will Watch Russians Flamingo Frenzy Ahead of Zoo Construction Crew Criticized Over Handling of Ferry Disaster Agreement Reached to Calm Ukraine Tensions Raw: Pope Francis Performs Pre-easter Ritual Raw: Bulgarian Monastery Dyes 5000 Easter Eggs Diplomats Reach Deal to Ease Tensions in Ukraine U.S. Sending Nonlethal Aid to Ukraine Military Holder: Americans Stand With KC Mourners Obama Greets Wounded Warriors Malaysia Plane: Ocean Floor Images 'Very Clear' Sparks Fly With Derulo and Jordin on New Album Franco Leads Star-studded Broadway Cast Raw: Two Lucky Kids Get Ride in Popemobile Boston Bombing Survivors One Year Later Sister of Slain MIT Officer Reflects on Bombing
Opinion
House Ads
Night & Day
Twitter News
Follow us on twitter
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Front page