Treasury Draws Criticism from Leaders on Capitol Hill

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• JIM LEHRER:

  Now the first of our economic stories. Tough words at today's House hearing on how the rescue's going. Judy Woodruff has our report.

• JUDY WOODRUFF:

  It was the only hearing on Capitol Hill today, and it was full of fireworks. The subject: whether the government's $700 billion rescue plan was doing enough to help struggling homeowners facing foreclosure.

  NEEL KASHKARI, assistant secretary of the Treasury: Thank you, Chairman Kucinich.

• JUDY WOODRUFF:

  The lead witness, Treasury's Neel Kashkari, the man in charge of implementing the plan. From the beginning, it was a rough reception from both sides of the aisle of the House subcommittee.

  Members said they were unhappy about the administration's decision to change the focus of the rescue plan from buying toxic assets to injecting capital directly into banks and other institutions.

  Republican Darrell Issa of California.

• REP. DARRELL ISSA (R-Calif.):

  It was disingenuous in the way that the administration came to us with a crisis which ultimately could not have been a crisis as described because the money has not, in any way, shape or form, been used as it was asked for.

• JUDY WOODRUFF:

  But Kashkari defended the decision in his opening statement and said it was working.

• NEEL KASHKARI:

  We have taken actions with the following three critical objectives: No. 1, stabilizing the financial markets; No. 2, supporting the housing market by avoiding preventable foreclosures and increasing mortgage finance; and, [No.] 3, to protect the taxpayers.

  We have acted quickly and in coordination with the Federal Reserve, the FDIC, and our colleagues around the world to help stabilize the global financial system, and it is clear that our coordinated actions are having an impact.