U.S. Treasury and Federal Reserve officials are considering a “permanent” plan to address the financial crisis, said Sen. Charles Schumber, who proposed a new agency to pump capital into troubled financial companies.
“The Federal Reserve and the Treasury are realizing that we need a more comprehensive solution,” Schumer, a Democrat who chairs the congressional Joint Economic Committee, told reporters in Washington today. “I’ve been talking to them about it.”
Schumer proposed an agency to inject funds into financial companies in exchange for equity stakes and pledges to rewrite mortgages to make them more affordable. His remarks indicate momentum is building for some wider plan after the Fed and Treasury’s takeovers of Fannie Mae, Freddie Mac and American International Group Inc. this month.
