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  • U.S., Banks Near A Plan to Freeze Subprime Rates

    11/30/2007 1:38:02 AM PST · by HAL9000 · 116 replies · 1,035+ views
    The Wall Street Journal (excerpt) ^ | November 30, 2007 | Deborah Solomon and Michael M. Phillips
    Excerpt - WASHINGTON -- The Bush administration and major financial institutions are close to agreeing on a plan that would temporarily freeze interest rates on certain troubled subprime home loans, according to people familiar with the negotiations. An accord could reassure investors and strapped homeowners, both of whom are anxious as interest rates on more than two million adjustable mortgages are scheduled to jump over the next two years. It could also give a boost to the Bush administration, which is facing criticism for inaction amid the recent housing turmoil. The plan is being negotiated between regulators including the Treasury...