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8 Democrats back bailout alternative

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Eight House Democrats Tuesday proposed an alternative plan for unfreezing credit markets without putting taxpayers at risk that includes dropping "mark to market" accounting rules for mortgage-backed securities and allowing the FDIC to buy "net worth certificates" in troubled banks.The plan (view the proposal here) -- based on ideas floated by former FDIC Chairman William Isaac in a Washington Post editorial -- was put forward by Rep. Peter DeFazio, D-Ore., and seven other Democrats as an alternative to a $700 billion troubled-asset repurchase program voted down by the House Monday. The bill's supporters are not among Congress' most influential lawmakers, and their proposal is not considered a serious rival to the plan backed by the Bush administration and House and Senate leaders. Some of its ideas have already been discussed by lawmakers who are looking at whether to amend the proposal shot down by the House Monday.Fair-value accounting standards require banks and...