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Durbin: Federal Bailout is Needed for Failing Mortgages

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Illinois U.S. Senator Dick Durbin today says the federal government needs to rescue lending houses from failing mortgages. Last night federal financial officials hatched a plan that would allow the government to buy failing mortgages at a discount from banks.

DURBIN: In effect, the tax payers of America are being asked to buy the mistakes that have been made by these institutions. As long as the banks and credit institutions are holding all these bad mortgages and mortgage securities, the credit system across America is basically frozen.

Durbin says the package could cost anywhere from $200 billion to a trillion dollars. He says Congress could take up the resolution as early as next week.

Meanwhile, Congressman Danny Davis says as Washington considers bailing out banks and lenders, it should also consider direct assistance for the public.

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