Thread: FACTBOX: Outline of U.S. Congress' draft bailout plan

Would direct 20 percent of any future profits from the bailout fund to the Affordable Housing Fund and the Capital Magnet Fund to meet U.S. housing needs. House Republicans, however, have made clear they oppose this provision

So this hasn't been removed???

Financial Stability Oversight Board comprised of the chairmen of the Federal Reserve, Securities and Exchange Commission and Federal Deposit Insurance Corp, and two members appointed by Congress to oversee activities of the program

WRONG!!! Assign independent, non-government affiliated experts to oversee.

- Authorizes a temporary money market mutual fund guarantee program for up to one year. Requires U.S. Treasury to restore any funds to the Exchange Stabilization Fund that had been used for that purpose and prohibits their further use.

HUH?

- Regular and detailed reports on transactions and other activities under the rescue program.

What will be content required in the reports and WHO will be conducting the analysis and writing?

No BAIL OUT! Let the super rich handle this one. Depression is possible, no matter what we do. People can't and aren't buying even the discounted in the middle of the grocery aisles. And gases tempers are flying; and layoff and cutting back in the job market is ongoing.

Now how many more immigrant illegal and legal can Americans afford?

Originally Posted by zeezil

Foreclosure mitigation for Americans at risk of losing home. However, a provision House Democrats had sought to help save homes in bankruptcy proceedings has been dropped.

How will this assistance be handled. Will ACORN, La Raza...be acting as consultants/intermediaties and handling any money?

This was the implication I heard from the Black Congressional Caucus and some other co called civil rights activists the other night.

They were saying that "civil rights organizations are working closely with Congress" and that the primary focus of the bailout would be foreclosures targeting "people of color"

Draft of Bill here:

http://michellemalkin.com/wp/wp-content ... 04_xml.pdf

I got this today from my rep:
Highlights of Early Draft of Economic Rescue Proposal
Help for Main Street:

If after five years, the government has a net loss as a result of the purchase program, the President is required to submit a proposal to recoup those losses from the entities that benefited from this program.
Provides for warrants of non-voting stock in companies receiving assistance so that taxpayers have an opportunity to recoup any losses.
Allows community banks to take capital losses on Government Sponsored Entity (GSE) assets against ordinary income, providing much needed relief for local banks.
Authorizes government agencies that hold mortgages to do work-outs with troubled borrowers provided such workouts do not harm the interests of taxpayers.
Assistance Funded By Wall Street, Not Main Street:

Requires the establishment of an insurance guarantee program that in lieu of purchasing assets with taxpayer funds is available to insure assets at no cost to the taxpayer. Costs would be fully paid for by participating companies (i.e. those receiving the assistance). Assets insured by the program would count against the total funds the Secretary would otherwise have available to make purchases.
Eliminating Special Interest Earmarks: Prior to House Republicans stepping in, Democrats had loaded up the bill with special interest provisions. Provisions removed by House Republicans include:


Provision to provide unions and other activist groups with proxy access for corporate boards
Provision to mandate shareholder votes on compensation issues (union priority)
Diversion of funds into a housing fund to support left-wing activist groups like ACORN
A provision to allow trial judges to arbitrarily adjust mortgages, creating a bonanza for trial lawyers
A provision to require the government to sell to state and local governments at a discount homes the government acquires as a result of foreclosure
Congressional Accountability Over Expenditure of Funds:

Of the total $700 billion provided, $250 billion is available now, $100 billion is available with Presidential approval and the final $350 billion is available only with Congressional approval.
Establishes a bipartisan Congressional Oversight Panel.
Establishes a Special Inspector General to monitor the program.
Directs the Government Accountability Office to review and audit the program.
Corporate Accountability & Reform:


Requires a study on the role of the mark-to-market rules and their impact on the current financial crisis.
Authorizes the Securities and Exchange Commission to suspend the mark-to-market rules.
Establishes workable executive compensation limits to ensure that bad actors who contributed to this crisis are not rewarded with golden parachutes or severance pay.

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Early Draft of Economic Rescue Proposal
Myth vs. Fact

Myth: Windfall for ACORN.
Fact: The Frank-Dodd proposal created an affordable housing slush fund and directed 20 percent of net benefits from the program to be directed to ACORN-type organizations. The proposed compromise does not include any affordable housing slush fund and directs all net benefits back to the Treasury to pay down the national debt.

Myth: Tax increase on financial industry.
Fact: The proposed compromise imposes NO tax on the financial services industry. The proposed compromise simply requires a proposal from the Administration to recoup any losses after five years.
Fact: The proposed compromise includes tax cuts for struggling community banks.


Myth: Blank check for $700 billion with little accountability.
Fact: In general, the Treasury Secretary is limited to purchasing up to $250 billion outstanding at any one time. If the Treasury needs to use another $100 billion, the President must certify this action and report to Congress. Further spending requires Congressional action.

Myth: Treasury plan is the only option available.
Fact: Treasury is given multiple options to deal with the current economic crisis, including insurance, public/private auctions, loan guarantees, and direct support to financial institutions.
Fact: Further, Treasury is MANDATED to create an insurance program (Section 102) that protects the taxpayers and requires companies that wish to participate in this program to have some skin in the game by paying risk-based premiums.

Myth: The taxpayer is not adequately protected.
Fact: The proposed compromise includes strong taxpayer protections. Treasury’s proposal had minimal oversight to protect taxpayer dollars. The proposed compromise enhanced the oversight structure by creating a Financial Stability Oversight Board, a Special Inspector General, and a Congressional Oversight Panel.


All AIG-type deals require mandatory equity interest in order to provide taxpayers with potential future benefits. All auctions require a percentage of equity interest based on participation in the program.
Requires the Secretary to develop regulations/guidelines necessary to prohibit or, in specific cases, manage any conflicts of interest with respect to contractors, advisors, and asset managers.
Myth: The taxpayer does not benefit from Treasury bailouts.
Fact: The proposed compromise (Section 113) requires mandatory equity interest in scenarios like AIG. The proposed compromise also allows Treasury to take an equity interest in the program generally.

Myth: Treasury will never use the insurance option.
Fact: Treasury is mandated (Section 102) to establish an insurance program and set risk-based premiums. This will protect taxpayers by requiring the beneficiaries of the insurance program to pay risk-based premiums.


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I DO NOT TRUST ANYTHING THEY SAY, ALL I TRUST IS MY INSTINCTS THAT TELL ME TO ROAR NO BAILOUT!!! I AM TIRED OF THEIR LIES AND I WILL NOT BE MOVED!!

NO BAILOUT!!! BAIL YOUR BUDDIES OUT YOURSELF, USE THE MILLIONS YOU HAVE ALREADY STOLEN FROM US!!!

TOGETHER WE CAN DO THIS!!!

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