Sen. Hillary Rodham Clinton, D-N.Y., has called on President Bush to create ‘an emergency working group on foreclosures’ to recommend new ways to confront the nation's housing finance troubles, according to a recent AP article. The panel would be led by financial experts such as former Treasury Secretary Robert Rubin, and former Federal Reserve chairmen Alan Greenspan and Paul Volcker.
This group would recommend legislation and other measures to ‘help re-establish confidence in our economy,’ Clinton said in prepared remarks for a Philadelphia speech on the economy.
Clinton also proposed greater protections for lenders from lawsuits by investors, the article adds. In addition, she stated that the Federal Housing Administration ‘should also stand ready to be a temporary buyer to purchase, restructure, and resell underwater mortgages.’
‘If the Fed can extend $30 billion to help Bear Stearns address their financial crisis, the federal government should provide at least that much emergency help to families and communities to address theirs,’ she pointed out.