The Devil Is In The Details
- The proposed legislation would disburse the $700 billion in stages. The first $250 billion would be issued when the legislation is enacted while another $100 billion could be spent if the president decided it was needed. The remaining $350 billion would be subject to congressional review, said a statement issues from [House Speaker Nancy] Pelosi’s office early Sunday morning.
- To further protect taxpayers, institutions selling assets under the plan would issue stock warrants giving “taxpayers an ownership stake and profit-making opportunities with participating companies.”
- The plan also would let the government buy troubled assets from pension plans, local governments and small banks.
- …no executives at participating companies could get multi-million-dollar severance pay — known as golden parachutes — while CEO pay that encourages excessive risk-taking would be limited.
- An oversight board of top officials, including the Federal Reserve chairman, would supervise the program, while its management also would be under close scrutiny by Congress’ investigative arm and an independent inspector general.
- …the government could use its power as the owner of mortgages and mortgage-backed securities to help more struggling homeowners modify the terms of their home loans.
What’s going to be interesting will be the jockeying for position as each political party tries to take the most credit for the deal. Republicans are going to try to prove that McCain was the white knight who, by riding into DC at sundown, saved the day. In the end, it will be shared credit–or blame.
In the end, House Republicans won support for a provision that would create a privately funded insurance program for mortgage-backed securities, congressional aides said.
Democrats jettisoned proposals that would have put money into a trust fund for affordable housing and would have allowed judges to alter the terms of mortgages for bankrupt borrowers, according to aides.Click here for reuse options!
Copyright 2008 Liberaland