Posted by Tina
GOP conservatives present rescue alternative, by Andrew Taylor Breitbart.com
* WASHINGTON (AP) – A group of conservative Republicans in the House on Thursday proposed a financial rescue package of tax breaks and a new government-sponsored insurance program for mortgage-backed securities as an alternative to President Bush’s proposed $700 billion bailout of Wall Street. *** Instead of the government buying the toxic mortgage securities, banks, financial firms and other investors holding them would pay premiums to the Treasury to finance the insurance coverage. *** Rep Eric Cantor, R-Va., said the plan would be to remove the burden of the bailout from taxpayers and instead place it, over time, on Wall Street. *** Under the House conservatives’ plan, institutions holding stronger assets would pay lower premiums for the government backing; higher-risk securities would require higher premiums. *** Robert Litan, an expert on banking and finance at the Brookings Institution, called the framework unworkable, saying it would not achieve the basic goal of creating a marketand establishing pricesfor mortgage securities no one’s willing to buy. * – Posted on Breitbart
Details of the plan are listed at the end of the article.