And the rest of the bailout goes to . . .
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Scott Jagow: Congress also holds a hearing today on the $700 billion bailout. A panel that’s monitoring that spending will make some recommendations.
Specifically, who should get the rest of the money. Here’s Nancy Marshall Genzer.
Nancy Marshall Genzer: The Treasury Department has a top-down approach to the bailout. Inject money into banks, and hope it trickles down to consumers as loans.
But banks are holding onto the money. Members of the bailout oversight board are expected to discuss that problem today before the House Financial Services committee.
Guy Cecala publishes Inside Mortgage Finance:
Guy Cecala: You’re going to hear, let’s do more for consumers, let’s do more for taxpayers, who are actually funding this bailout.
The head of the oversight panel has said the bailout has to start with homeowners to be effective.
Eric Stein of the Center for Responsible Lending says most lawmakers at today’s hearing will agree.
Eric Stein: I would expect the sentiment to be expressed loudly that Treasury needs to focus on keeping homeowners in their homes.
It will be up to Congress to change things. The oversight panel doesn’t have any power to set policy.
In Washington, I’m Nancy Marshall Genzer for Marketplace.
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