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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

(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.”

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House Financial Services Committee Chairman Rep. Barney Frank, D-Mass., is in favor of the plan. (AP Photo)

Atlanta-based Georgian Bank today became the 95th to fail this year. (GeorgianBank.com)

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It creates even greater taxpayer exposure for the program, where the taxpayer is certainly not going to recoup anywhere near his investment. - Republican Rep. Jeb Hensarling

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Feds Weigh New Bailouts for Smaller Banks