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

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

Sat Sep 27, 2008 5:11pm - U.S. lawmakers pressed forward on Saturday with talks over a proposed massive financial system bailout, hoping to nail down an agreement by Sunday.

The Bush administration last week asked Congress to give the Treasury secretary authority to buy up to $700 billion in bad assets from banks and other companies in a bid to ease the most serious U.S. financial crisis since the Great Depression.

Following are provisions compromise legislation is expected to incorporate, based on a draft bill and comments from lawmakers about the state of negotiations.

- The bill would create a Troubled Assets Relief Program (TARP) to purchase mortgage-related assets originated or issued on or before March 14, or any assets if needed to promote financial stability.

- $700 billion overall to be authorized in installments of

$250 billion. That could be increased to $350 billion upon notification to Congress by the president.

- Assets could be purchased from any financial institution having significant operations in the United States.

- Government to get warrants for equity in participating companies as a way of protecting taxpayers and allowing them to benefit from any profit gains.

- 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. Continued...

- Restrictions on executive compensation at companies that participate.

- Incorporates House Republican proposal to allow for private-sector funded mortgage insurance program as an option for Treasury secretary.

- 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.

- Requires a government investigation into causes of crisis, with report delivered to Congress by June 2009.

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

- Establishes a congressional oversight panel that would also submit a report on regulatory reform no later than January 20, 2009, the date a new president takes office.

- 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.

- 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.

- Requires federal financial regulatory agencies to cooperate with federal law enforcement to investigate fraud or misrepresentation with respect to financial products. Continued...

Investors who sold preferred stock in mortgage finance giants Fannie Mae and Freddie Mac, between January 1, 2008, and before September 7, 2008, to pay higher ordinary income taxes on any gains rather than the lower capital gains tax. The government announced the seizure of Fannie Mae and Freddie Mac on September 7.

(Compiled by Reuters' Washington bureau, editing by Patricia Zengerle)


http://www.reuters.com/article/newsOne/ ... geNumber=3

THEY ARE STILL NOT TELLING US WHAT THEY ARE GOING TO DO AND WHAT I SEE I DO NOT LIKE!!!! NO TO THE BAILOUT!!! KEEP ROARING!!!!

- 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.

This provision MUST be stripped! ALL the profits should go to paying back us taxpayers. ZERO to ACORN, Laraza and any other such organizations - they are the reasons we are in this mess!

Isn't this kind of short considering the document is 106 pages long. I am sure there are things in there that are even more reprehensible. (sp) I am just sick of this move on the part of OUR government, for the people, by the people. I watched c-span last night and not one caller agreed with this bailout. So why are they pushing it forward? Silly question I know, but I had to ask.

Originally Posted by agrneydgrl

Isn't this kind of short considering the document is 106 pages long. I am sure there are things in there that are even more reprehensible. (sp) I am just sick of this move on the part of OUR government, for the people, by the people. I watched c-span last night and not one caller agreed with this bailout. So why are they pushing it forward? Silly question I know, but I had to ask.

THEY ARE TRYNG TO KEEP US CONFUSED!!! LET MAKE IT SIMPLE AND JUST CONTINUE TO ROAR NO BAIL OUT!!!!

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.

You can bet Acorn and LaRaza are hiding right in this section.

NO BAILOUT UNDER ANY CONDITIONS!!!!

Assets could be purchased from any financial institution having significant operations in the United States.

Foreign Banks bailout by American taxpayers benefiting those foreign governments!!!

Originally Posted by zeezil

Assets could be purchased from any financial institution having significant operations in the United States.

Foreign Banks bailout by American taxpayers benefiting those foreign governments!!!

WE SAY NO!!!!!

Requires a government investigation into causes of crisis, with report delivered to Congress by June 2009.

So the same government officials that were complicit in allowing the crisis to happen will be investigating their complicity in the debacle along with the GSE's and Wall Streeters they cozied up with???

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?