U.S., Banks Near A Plan to Freeze Subprime Rates

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U.S., Banks Near A Plan to Freeze Subprime Rates

By Deborah Solomon and Michael M. Phillips

Word Count: 1,346 | Companies Featured in This Article: Citigroup, Wells Fargo, Washington Mutual

WASHINGTON -- The Bush administration and major financial institutions are close to agreeing on a plan that would temporarily freeze interest rates on certain troubled subprime home loans, according to people familiar with the negotiations.

An accord could reassure investors and strapped homeowners, both of whom are anxious as interest rates on more than two million adjustable mortgages are scheduled to jump over the next two years. It could also give a boost to the Bush administration, which is facing criticism for inaction amid the recent housing turmoil.

It's pretty sad when even the Republican party is turning into market manipulating, welfare state supporting, gutless panderers.

And the main stream media wonders why people support candidates like Ron Paul. I will never ever vote for a single politician who supports this plan.

Next year for an encore they are going to pay off debts for anyone who files for bankruptcy. Go ahead, don't worry about your credit rating, take out some bad loans, be late on payments, buy that third house on a subprime loan, the government will be hear to bail you out.