House Negotiators To Seek Fee On Banks To Aid Jobless Homeowners

By Jessica Holzer

Of DOW JONES NEWSWIRES

WASHINGTON (Dow Jones)--U.S. House negotiators working to finish the financial-overhaul bill are likely to propose leaning on large banks and hedge funds to bankroll a proposed $3 billion program to aid unemployed homeowners.

Rep. Barney Frank (D., Mass.) told reporters Tuesday he would propose a fee on banks and hedge funds with more than $50 billion and $10 billion in assets, respectively, to fund the program.

From the Wall Street Journal | June 22, 2010

People who cannot make their mortgage payments because they are out of work or have too much medical debt would get a loan from the government under the proposal.

Original legislation approved by the House last year would have set aside Troubled Asset Relief Program funds to pay for the program. But Frank said Tuesday that he would now propose the special fee on the financial industry.

Frank said the special fee would also be used to pay for an additional $1 billion for a federal program to help towns and cities to rehabilitate neighborhoods ravaged by foreclosures.

-Jessica Holzer, Dow Jones Newswires; 202-862-9228; jessica.holzer@dowjones.com