Feds Weigh New Bailouts for Smaller Banks

Congressional Dems on board with plan to help institutions hammered by real estate
By Will McCahill,  Newser Staff
Posted Sep 25, 2009 6:40 PM CDT
House Financial Services Committee Chairman Rep. Barney Frank, D-Mass., is in favor of the plan.   (AP Photo)
camera-icon View 1 more image

(Newser) – With the residential and commercial real-estate markets continuing to hammer smaller US banks, the Treasury and other federal agencies are trying to diagram help for institutions considered too much of a gamble under original bailout terms. Congressional Democrats are “very, very supportive” of such a move, a source tells AP, while, predictably, Republicans consider it “a uniquely bad idea.”