Lobbyists urge rescue plan passage

Lobbyists are scrambling to push Congress to devise policy changes that would propel the financial rescue plan toward passage.

The Wall Street Journal reports there are several proposed changes to the language of the plan, including “mark-to-market” accounting rules that peg assets’ value to currently low market values; a reduction in tax on dividend earnings repatriated from abroad to inject liquidity into U.S. markets; and expanded federal insurance on personal and business bank accounts to further reassure accountholders and prevent panic withdrawals.

To address those homeowners in a mortgage crisis, lobbyists are urging an extension of unemployment benefits to the policy, along with changes to the language that would allow the Treasury to shrink mortgages. The Journal reports bank and brokerage representatives hope taking such measures would “stave off a renewed effort by Democrats to allow judges to reduce mortgage obligations for homeowners in bankruptcy, which they say will raise the cost of home financing.”