White House, FDIC disagree on foreclosure bailout

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Disagreement between the Bush administration and the Federal Deposit
Insurance Corp. could be delaying their efforts in a
foreclosure-prevention program. Under a plan developed by the FDIC,
between 2 and 3 million U.S. homeowners could rework troubled
home loans by receiving a partial federal guarantee for losses on
modified mortgages. That proposal would use between $40 billion and $50
billion from the $700 billion financial-rescue fund created by the
federal government. The Bush administration, meanwhile, is reviewing
alternative plans that have yet to be revealed.