Rep. Frank thinks the bailout will pass: report

WASHINGTON (Reuters) - A key lawmaker was cautiously optimistic on Thursday that there is support in the House of Representatives to pass a $700 billion financial rescue bill and added that the Treasury could begin buying tainted mortgage assets soon.

"I think so, I can't be sure," House Financial Services Committee Chairman Barney Frank said on CNBC television, when asked if there were enough votes to pass the bill.

Financial market gyrations since the House failed to pass a version of the measure on Monday may sway some lawmakers to switch their vote and approve an amended version, the Massachusetts Democrat said.

Frank, who has played a central role in shaping the package, said the Treasury could begin buying soured mortgage backed securities soon.

"Given how important they think it is, I'd think they'd be ready to buy some stuff right away," he said.

(Reporting by Mark Felsenthal; Editing by Tom Hals)