Dems Seek Exec Compensation Limits

Despite Bush administration objections, congressional Democratic leaders are planning to require financial services firms that sell distressed mortgage assets to the Treasury Department to restrict executive compensation. House Financial Services Committee Chairman Barney Frank, D-Mass., also said Democrats feel "strongly" about a provision that would allow bankruptcy judges to restructure mortgages. He said the bankruptcy provision would provide relief for distressed homeowners whose mortgages are not purchased by the Treasury. Mr. Frank said House and Senate leaders are "very close" to agreeing on a bill that would allow Treasury to purchase up to $700 billion in illiquid mortgages. Once congressional leaders agree on a bill, they will begin negotiations with the administration, the chairman said. Separately, 35 consumer, labor, and civil rights groups said they "strongly" back the bankruptcy provision. "We cannot support legislation that fails to help millions of families in danger of losing their homes, while spending hundreds of billions of dollars of taxpayer money to bail out those who caused the problem," the groups said in a letter to Congress.