Further bank aid must include pay limits: Dodd

WASHINGTON (Reuters) - The Senate will not approve more bailout money for banks unless it includes limits on executive pay and help for struggling homeowners, Senate Banking Committee Chairman Chris Dodd said on Monday.

"Executive compensation needs to be dealt with, we mentioned foreclosure mitigation needs to be part of this as well," Dodd, a Connecticut Democrat, said on ABC's "Good Morning America."

"My colleagues in the Senate will not provide any additional funds unless they are assured by the Obama administration that these provisions will be a part of it," he said.

Any additional aid must also include stronger oversight provisions, limits on merger and acquisition activity, and protections for taxpayers, Dodd said.

President George W. Bush, working with President-elect Barack Obama, might ask Congress for permission to use the remaining half of a $700 billion bailout program aimed at stabilizing the financial system.

The purpose of the request would be to have the funds in place soon after Obama takes office on January 20. But it may prove difficult to win approval because the bailout program is unpopular with many lawmakers who feel too much money has already been given to Wall Street with no strings attached.

"It's been totally mismanaged in my view by the Bush administration, we've seen that over the last couple of weeks," Dodd said.