Dems Demand Exec. Pay Limits In Bank PLan

Dems Demand Exec. Pay Limits In Bank Plan
Democrats Call For Homeowner Help, Exec. Pay Limits


POSTED: 4:04 am EDT September 22, 2008
UPDATED: 1:49 pm EDT September 22, 2008


HONG KONG -- Senate Democrats proposed adding government help for homeowners and limits on executive compensation to the government's $700 billion financial bailout of Wall Street.

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A draft of the plan obtained Monday by The Associated Press showed that Senate Banking Committee Chairman Chris Dodd also wants the government to get a stake in the companies helped by the unprecedented rescue.

The measure would end the program at the end of next year, instead of creating a two-year initiative as the Bush administration has requested.

It also would add layers of congressional oversight, including an emergency board to keep an eye on the program with two House and Senate appointees.

President George W. Bush has said such efforts to add provisions would "undermine the effectiveness of the plan."

Bush added: "Indeed, the whole world is watching to see if we can act quickly to shore up our markets."

Bush said there will obviously be "differences over some details," but that the policy-making process must work through them.

The government's plan calls for buying bad mortgage loans that have created big problems for financial companies.

Dodd said that once the financial markets stabilize, taxpayers should be "first in line" to get back some of the money the government is putting up.

Dodd told CBS on Monday that lawmakers won't see eye to eye on the government's bailout plan.

Dodd said it's just as important to act responsibly on it as it is to act quickly. He said lawmakers don't want to have to come back in a month to pass another rescue plan.

Another key Democrat warned that Congress won't pass the plan right away.

House Financial Services Committee Chairman Barney Frank told ABC that the treasury secretary is being "entirely unreasonable" to think lawmakers will pass it without adding provisions that Democrats want.

A Republican on the panel, Christopher Shays of Connecticut, agreed, saying, "we're doing it for the taxpayers" and not for the company executives.

Markets Respond

Wall Street fell in early trading Monday as investors nervously await further news about the government's plan to buy $700 billion in banks' mortgage debt.

Asian stocks moved higher overnight. European shares opened higher, then retreated.

Wall Street investors seem to be relieved that federal authorities are moving to relieve the nation's banks of their toxic assets. But it's still unclear how successful the plan will be in loosening up the credit markets and propping up the sinking housing market.

Bush Heads To U.N. Session

Bush administration officials and congressional leaders met over the weekend on the rescue plan, the main thrust of which congressional leaders have endorsed.

Bush hopes lawmakers can approve the plan this week.

The president heads to New York on Monday for the annual U.N. General Assembly session, but aides said he'll be getting regular updates on the financial rescue between meetings with world leaders.

The government continues to move on other fronts to steady the nation's financial system.

Late Sunday, the Federal Reserve granted Goldman Sachs and Morgan Stanley, the country's last two major investment banks, approval to change their status to bank holding companies.

Goldman and Morgan Stanley will be able to set up banking subsidiaries to take deposits and also get access to the Fed's emergency loan program. They'll also be able to get short-term loans from the New York Federal Reserve Bank during a transition.

The change also means the two investment houses will fall under the direct regulation of the Fed, not the Securities and Exchange Commission.




http://www.local6.com/money/17526168/detail.html

A draft of the plan obtained Monday by The Associated Press showed that Senate Banking Committee Chairman Chris Dodd also wants the government to get a stake in the companies helped by the unprecedented rescue.

The measure would end the program at the end of next year, instead of creating a two-year initiative as the Bush administration has requested.

It also would add layers of congressional oversight, including an emergency board to keep an eye on the program with two House and Senate appointees.

President George W. Bush has said such efforts to add provisions would "undermine the effectiveness of the plan."




Alright then......when Bush is claiming that oversight and other provisions meant to protect American taxpayers, will "undermine the plan", all doubt is removed as to the intent behind what "the plan" is all about.

And, what Bush and Co. have in mind is, evidently, not anything good.

As usual, let us beware :?