The Main Points And The Compromises
September 28th, 2008, 10:26 PM EDT
The original Paulson plan was never going to fly. Here’s how they compromised:
- A breakthrough came Saturday night, with the addition of a requirement sought by centrist Democrats and Republicans to ensure that the government be paid back by companies that got help. The president would have to tell Congress after five years how he planned to recoup the losses.
- Another key bargain – this time to draw Republican support – allows, but doesn’t require, government to insure some bad home loans rather than buy them. That’s designed to limit the amount of federal money used in the rescue.
- …Barack Obama sought credit for taxpayer safeguards added to the initial proposal from the Bush administration. Later, at a rally in Detroit, Obama said, “it looks like we will pass that plan very soon.”
- The rescue would only be open to companies who deny their executives “golden parachutes” and limit their pay packages. Firms that got the most help through the program – $300 million or more – would face steep taxes on any compensation for their top people over $500,000.
- The government would receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in recipients’ future profits.
- To help struggling homeowners, the plan would require the government to try renegotiating the bad mortgages it acquires with the aim of lowering borrowers’ monthly payments so they can keep their homes.
- But Democrats surrendered other cherished goals: letting judges rewrite bankrupt homeowners’ mortgages and steering any profits gained toward an affordable housing fund.
Here are more details:
- -EXECUTIVE PAY. Restrictions would be imposed on the compensation received by executives whose companies sell some of their bad assets through the government’s purchase program. There would be tax restrictions on executive pay over $500,000 and limits on so-called “golden parachutes” for executives who leave the companies getting government bailouts.
- -OVERSIGHT. The Treasury will be required to provide details of its purchases of bad assets within two days of the transaction. Oversight boards would be created including one with members selected by Democratic and Republican leaders in the House and Senate and one that will include top government officials.
- -TAXPAYER PROTECTION. Taxpayers would be given ownership stakes in companies whose bad assets are purchased and after five years if the government is facing a loss in the program then the president will be required to submit a plan on how to recoup a portion of the losses from the companies that participated in the program.
- A proposal floated that did not make the final version of the bill:- HELP FOR TROUBLED HOMEOWNERS. They failed in an effort to give judges the power to modify mortgage terms for people who have filed for bankruptcy and Democrats were unable to get approval for part of any profits the government might receive to go to help people facing mortgage defaults.
What a scammmmmm!!!!!!
If I don’t pay my mortgage, it gets forclosed. If I don’t pay my car payment, it gets repossesed. If I don’t pay my utility bills, they get turned off. Both political parties should be ashamed. We the people were sold out by both Dems and Reps. I only wish we had a competant Independant running for President. The only problem with Barr is he is crazy.
September 28th, 2008 at 11:45 pm
The bailout of Wall Street with public money is absolutely essential, and will stand as a jewel in the legacy of the Cheney/Bush Administration and their Christian Socialist Party.
September 29th, 2008 at 12:28 am
Here-is-an-appropriate-true-picture-of-this-scam-found-on-this-website:
http://housingdoom.com
From: Minister of the Treasury Paulson
Subject: REQUEST FOR URGENT CONFIDENTIAL BUSINESS RELATIONSHIP
Dear American:
I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.
I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you.
I am working with Mr. Phil Gram, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transaction is 100% safe.
This is a matter of great urgency. We need a blank check.
We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.
Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.
Yours Faithfully
Minister of Treasury Paulson
http://housingdoom.com
September 29th, 2008 at 12:58 am
If all the banks go down the toilet we all end up on lines at soup kitchens. So you cut the best deal you can and then man up.
September 29th, 2008 at 1:37 am
Of course the American tax payer is getting screwed up the ass again. What will be the next bail out, war or screw up just around the corner?
September 29th, 2008 at 3:21 am
I sure hope this works better than the tax rebate/stimulus of last June? We ALL may be up creek without a paddle in a wire canoe!
September 29th, 2008 at 7:05 am
Like the old saying in the Military: “Do something, even if it’s wrong”…it may appear at first glance as silly and wrong however, it does move you off your butt and gets things moving which is what is needed. Something may be far better then nothing…I hope.
September 29th, 2008 at 8:09 am
The stimulus checks were a joke, just put us further in the hole. I don’t know of one person that purchased anything. They just went into savings or to pay bills.
September 29th, 2008 at 12:36 pm
I know lots of people who bought stuff. Especially for back to school.
September 29th, 2008 at 12:39 pm
This is a historic failure for the Democrat leadership. Pelosi, Frank, Rangel and Hoyer could not get the job done.
September 29th, 2008 at 2:17 pm
It’s time to collect our pitchforks and torches for a march on Capitol Hill and the White House.
Roy Blunt and Eric Cantor should be the first to feel a rope.
September 29th, 2008 at 2:33 pm
This is only going to get more sad if Congress goes on break for the “Jewish holidays” instead of sticking around to do their jobs.
September 29th, 2008 at 2:36 pm
Wicked Pelosi did not lead or listen as she tried to score partisan points in the middle of a national crisis.
Her two years as Speaker have been poisonous to bipartisanship.
September 29th, 2008 at 2:40 pm
Hmmm. “Adrien” is only repeating what Blunt/Cantor just said on TV. That Pelosi’s speech poisoned the well. I just read a transcript of her chamber speech and I don’t see anything partisan in it at all.
Yes, the Repukes are already leaving town for the Jewish holidays. This is all working out according to plan for the Repukes.
September 29th, 2008 at 2:56 pm
I wonder if Pelosi will be consistent and call the 90+ Democrats “unpatriotic”.
September 29th, 2008 at 2:56 pm
I suppose “Anonymouse” is your real name? Give me a break with the kneejerk suspicion. Not all of Alan’s fans agree with him.
September 29th, 2008 at 3:10 pm
The vote was along party lines. The Republicans have sold us all out … again.
You’ve stripped 15% from my savings/retirement today alone and this is only the latest drop in a summer and fall of nothing but drops.
The Repukes have destroyed us all. Enjoy your holiday and the “new year”. I have to go find a rope and a pitchfork.
September 29th, 2008 at 3:33 pm
If indeed you know people who purchased “stuff” with the stimulus checks, my next question is why? With the economy in the shape it is in why wouldn’t everyone have put the money in savings or pay bills? More examples of why people are in debt up to their a–, spend, spend, spend, just like the government.
September 29th, 2008 at 3:34 pm
The failure of the “Bail-out” is the greatest thing to happen to this country in modern time. I don’t want my tax money to pay off the stupid decisions of congress (failure to regulate Fannie Mae/Freddie Mac), and corrupt wall street.
The funny thing about this is, the democrats run the house and senate, yet Palosi and Reid can not even lead their own to vote for this (94 democrates voted no). It failed by a grand total of 13 votes.
Great leadership democrats.
September 29th, 2008 at 3:50 pm
Glenn Beck is on Blitzer/CNN and blaming all our current problems on the “Dems” and “RINOs”. If conservatives were only running things, we’d all be in high cotton.
Because of the Dems and RINOs, “life in America is about to change”.
He says he’s been been predicting a depression for the last 18 months and our troubles are all because of the liberal/socialist Dems and RINOs who have destroyed America. If people would just listen to Glen Beck, we’d all be better off. I wonder what Rush has to say.
Bush’s parting gift to America. We’ve been Hannitized.
“The failure of the “Bail-out” is the greatest thing to happen to this country in modern time.”
There are people who said the same thing about the Great Depression. The fine men running the soup kitchens and tent camps made a fortune on the travails of others.
September 29th, 2008 at 4:29 pm
anon, watch this with an open mind
http://www.youtube.com/watch?v=NU6fuFrdCJY
September 29th, 2008 at 10:51 pm
Nancy Pelosi deliberately sabotaged the vote.
Do you think she’s stupid… like she didn’t know giving that speech wouldn’t infuriate the Republicans?
Now they’re going to reintroduce the bill but this time with all her leftist-graft goodies put back into it.
September 30th, 2008 at 3:05 am