Fighting as ever for middle-class families, Congressional Democrats are seeking key changes in the Bush administration's bailout for the financial industry. From the AP:
Judges could rewrite mortgages to lower bankrupt homeowners' monthly payments as part of changes congressional Democrats are seeking in the Bush administration's proposed $700 billion financial system bailout. Also, companies that unloaded their bad assets on the government in the massive rescue would have to limit their executives' pay packages and agree to revoke any bonuses awarded based on bogus claims, according to a draft of the plan obtained Monday by The Associated Press.
The proposal by Sen. Chris Dodd, D-Conn., the Banking Committee chairman, gives the government broad power to buy up virtually any kind of bad asset — including credit card debt or car loans — from any financial institution in the U.S. or abroad in order to stabilize markets.
But it would end the program at the end of next year, instead of creating the two-year-long initiative that the Bush administration has sought. And it would add layers of oversight, including an emergency board to keep an eye on the program with two congressional appointees, and a special inspector general appointed by the president.
More here. This is just one more example of how Democrats put Main Street before Wall Street.
Update, late Monday afternoon: It sounds like the White House will agree to some of the Democrats' demands. This truly is a situation where bipartisan support is needed.