Senators Back New Bank To Finance Infrastructure

A bipartisan group of senators, joined by both business and labor leaders, is calling for the creation of government-owned but independent infrastructure bank to channel private sector investment into transportation, energy and water projects.

Democrat John Kerry of Massachusetts says the bank could generate as much as $640 billion in its first 10 years to "help bridge the infrastructure deficit that has been plaguing our nation for decades."

He was joined in introducing the legislation by fellow Democrat Mark Warner of Virginia, Republican Kay Bailey Hutchison of Texas, U.S. Chamber of Commerce President Thomas Donohue and AFL-CIO President Richard Trumka.

The bank, to be established with federal start-up money of $10 billion, would provide loans and loan guarantees for projects at least $100 million in size.