UPDATE 1-US Treasury agrees equity stake in bailout--Frank

(Recasts first paragraph; adds Frank quotes)

WASHINGTON, Sept 22 (Reuters) - The Bush administration has accepted changes to its $700 billion Wall Street bailout plan that would give the government a stake in institutions unloading assets under the plan, the chairman of the House of Representatives Financial Services Committee said on Monday.

The administration also has agreed that the plan should include more efforts to prevent home foreclosures and that an oversight board should be created to monitor the bailout, said Massachusetts Democratic Rep. Barney Frank.

“We got a lot of advice from people in the financial community that (Treasury) should also be able to take some equity and we agreed, and the secretary’s agreed with that,” Frank told reporters at a briefing.

“We also made it clear that if he takes that equity, it has to be with warrants,” he said.

On reducing foreclosures, Frank said, “The foreclosure piece is agreed on. There was Republican congressional opposition but the administration accepted it.

“They’ve accepted our views on oversight ... There is some contention now over compensation and corporate governance.” (Reporting by Kevin Drawbaugh and Donna Smith; Editing by Tim Dobbyn)