Partial Bank Ownership Plan Gains Traction

Frank and Blunt also responded to Sen. John McCain's mortgage proposal this week, criticizing his plan to refinance distressed mortgages.

(ABCNEWS.com)

"Not at face value, we're not going to buy up the mortgages at face value, because the people who lent the money shouldn't get out of this hole," Frank said. "But if they are willing to take a lesser amount from the Treasury, we can then avoid the foreclosures."

The minority whip agreed. "Somebody needs to take the loss here, and it needs to be the person that had the bad judgment of making that loan, of buying those poorly put-together mortgage-backed securities. There's going to be loss here, and it shouldn't be loss borne by the taxpayer. Barney's absolutely right," Blunt said.

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But Baker backed McCain when asked about his mortgage plan. "I think it's a good proposal. It's certainly a very good political proposal, and I think it could be a good substantive proposal, provided the mechanics of how you get there are delineated a bit more."

NOTE: In his discussion of the fund coordinated by former Presidents George H.W. Bush and Bill Clinton to provide hurricane relief, Baker misstated the Web site to visit to learn more and to make a contribution toward relief work. The correct site is http://www.bushclintoncoastalfund.org/.