WASHINGTON (Reuters) - Treasury Secretary Henry Paulson on Friday said the Bush administration opposes “major government interventions” in the slumping housing market that would bail out speculators or lenders.
“We’re focused on plans to keep homeowners who want to stay in their homes and are willing to work with lenders in their homes,” he told WGN Radio in Chicago in an interview that was broadcast on the Web.
“What we’re against are major government interventions that would be a bailout for speculators or lenders,” he added.
Two prominent congressional Democrats -- Senate Banking Committee Chairman Christopher Dodd of Connecticut and House of Representatives’ Financial Service Committee Chairman Barney Frank of Massachusetts -- have offered proposals that would use government funds to either buy or help refinance mortgages.
Reporting by Tim Ahmann, editing by Walker Simon