Bush offers subprime help

President Bush pledged to help people with subprime mortgages keep their homes, while rejecting a federal bailout of…

President Bush pledged to help people with subprime mortgages keep their homes, while rejecting a federal bailout of lenders.
He said Friday that he will “modernize and improve” the Federal Housing Administration “by lowering down-payment requirements, by increasing loan limits and providing more flexibility in pricing.”
The plan would help borrowers who were at least 90 days behind in payments avoid default and allow them to stay in their homes.
In addition, Mr. Bush said that he will propose changing the tax code to help homeowners refinance their homes at lower rates.

Fed: Mortgage mess not its problem
The Federal Reserve Board is poised to protect the markets, but it has no immediate plans to cut interest rates.
“It is not the responsibility of the Federal Reserve — nor would it be appropriate — to protect lenders and investors from the consequences of their financial decisions,” Fed Chairman Ben Bernanke said at the Federal Reserve Bank of Kansas City (Mo.)’s Economic Symposium in Jackson Hole, Wyo., Friday.

Consumer sentiment hits the skids
The Index of Consumer Sentiment fell seven points to 83.4 last month, from 90.4 in July, according to the Reuters/University of Michigan Surveys of Consumers.
The Index of Consumer Expectations fell to a reading of 73.7, from 81.5 in July, while the Current Economic Conditions Index was 98.4, down from 104.5 in July.
The Index of Consumer Expectations fell to 73.7, from 81.5 in July. Meanwhile, the Current Economic Conditions Index was 98.4, down from 104.5 in July.

Spending rises 0.4% in July
Consumer spending was stronger in July, with personal-consumption expenditures improving 0.4% to $37.8 billion, after a 0.2% increase in June, the Bureau of Economic Analysis reported Friday.
Analysts caution that July’s improvement may not have been repeated in August because of the volatility in the financial markets.

S&P names Sharma as new president
Deven Sharma has replaced Kathleen Corbet as president of Standard & Poor’s of New York.
His appointment follows extensive criticism of S&P’s ratings, particularly of hedge funds backed by subprime mortgages.
Mr. Sharma had been executive vice president of investment services and global sales for S&P.
The company said Ms. Corbet is resigning to pursue other opportunities.