WASHINGTON — A key House Democrat is pushing to get the second half of the $700 billion rescue fund released next month, before President-elect Barack Oba ma is inaugurated, in part to help stimulate the economy.
Barney Frank, chairman of the House Financial Services Committee, said Monday he is preparing legislation to require that some of the money be spent for specific purposes, such as stemming foreclosures and reducing mortgage rates.
At the same time, commercial-real-estate developers and other companies are seeking their own share of the bailout pot.
Frank’s bill would impose tighter restrictions on the second $350 billion of the bailout funds, such as requiring banks to report on their new lending every quarter and toughening limits on executive compensation. Many U.S. banks have received federal capital in an effort to stimulate lending.
“I don’t want to wait until Obama,” the Massachusetts Democrat said in a phone interview. “I think we can do it now.”
The bailout funds, along with a stimulus package the Obama administration is expected to push early next year, would have “the impact that you need to get this economy back out of the dumps,” Frank said.
A spokeswoman for Oba ma did not return a call for comment Monday.
