Pelosi eyes foreclosures bill for 2nd TARP tranche

WASHINGTON (Reuters) - U.S. House of Representatives Speaker Nancy Pelosi said on Monday she and another key lawmaker are discussing legislation to pass before Congress can release the second half of funding for the federal government's $700 billion bank bailout plan.

Looking ahead to when the White House asks Congress for another $350 million for the Troubled Asset Relief Program (TARP), Pelosi said she and Rep. Barney Frank have talked about "legislation that insists that the provisions of the (TARP) law be honored, before we release anymore funds."

She said the Bush administration has "totally ignored" a provision of the original TARP law that required strong efforts to reduce home foreclosures.

"Absolutely nothing has been done to respect that part of the legislation," said Pelosi, a California Democrat, at a news conference.

Frank is a Massachusetts Democrat and chairs the House Financial Services Committee.

(Reporting by Kevin Drawbaugh)