Frank would cap executive pay in financial rescue

WASHINGTON Sun Sep 21, 2008 3:08pm EDT

Rep. Barney Frank, House Financial Services Committee chairman, gestures during the Reuters Regulation Summit in Washington January 11, 2007. REUTERS/Jonathan Ernst

Rep. Barney Frank, House Financial Services Committee chairman, gestures during the Reuters Regulation Summit in Washington January 11, 2007.

Credit: Reuters/Jonathan Ernst

WASHINGTON (Reuters) - Rep. Barney Frank on Sunday proposed including executive pay limits and foreclosure mitigation efforts in the Treasury Department's $700 billion financial bailout plan aimed at absorbing bad mortgage assets that have paralyzed the U.S. financial system.

In a counter-proposal to the Treasury plan, Frank would also put the facility under the oversight of the U.S. comptroller general, the government's main auditor, according to a document obtained by Reuters.

Frank's staff gave the proposal to Treasury staff at a meeting on Sunday, a person knowledgeable about the meeting said.

(Reporting by Kevin Drawbaugh, writing by Mark Felsenthal; Editing by Gary Hill)

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