Frank: Bailout to pass Congress this week

House Financial Services Chairman Barney Frank predicted Monday that congressional Democrats would reach agreement with the Bush administration on a Wall Street bailout by the end of the week.

Frank’s comments came hours after he told reporters that congressional passage of a bailout was “not essential this week.”

{mosads}Frank (D-Mass.) reiterated his earlier claim that “a great deal of progress has been made already” on the package that would give the Treasury Department power purchase an estimated $700 million worth of distressed mortgaged-based securities to steady the roiling financial markets.

Frank said Monday night that Senate and House negotiators agree on the major provisions of the bailout.

“We’re in very good agreement with the Senate,” he said.

He added that progress has been made with the administration but acknowledged overstating earlier in the day just how close Democrats and Bush administration officials were to a deal.

Frank said Democrats and administration officials have agreed to the creation of an oversight board, likely to be made up of members of the Senate and House, to review the Treasury Department’s purchase and management of shaky mortgage-related investments.

Frank, however, said negotiators continue to disagree over a proposal that would strictly limit the compensation of executives at investment firms offloading toxic assets to the government.

While Democrats favor limiting the compensation of executives who take advantage of the bailout, Republicans balk at the proposal.

“It’s like asking a rabbi to eat bacon,” said Frank, characterizing the Republican reaction.

Frank said that Democrats and Republicans also at odds over a Democrat-backed proposal to empower bankruptcy judges to readjust the terms of mortgages in danger of foreclosure.