Bailout Draft Available

The NY Times has posted an article that includes a PDF of the Bailout Plan.  The most interesting information to me is quoted below (from the article not the actual plan):

All sides had to surrender something. The administration had to accept limits on executive pay and tougher oversight; Democrats had to sacrifice a push to allow bankruptcy judges to rewrite mortgages; and Republicans fell short in their effort to require that the federal government insure, rather than buy, the bad debt.

Even so, lawmakers on all sides said the bill had been significantly improved from the Bush administration’s original proposal.

The final version of the bill included a deal-sealing plan for eventually recouping losses; if the Treasury program to purchase and resell troubled mortgage-backed securities has lost money after five years, the president must submit a plan to Congress to recover those losses from the financial industry. Presumably that plan would involve new fees or taxes, perhaps on securities transactions.

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4 thoughts on “Bailout Draft Available

  1. I was a bit bummed to find out that we would be buying directly instead of insuring, but I'm sure there was a reason for why that wouldn't work that I'm just not familiar with. Thanks for the link!

  2. They are hoping to buy the securities and sell them – possibly for a profit – to ease the burden on the taxpayers.
    I'm just glad they put in restrictions on executive pay and more oversight. Letting them go without oversight is what got us into this mess.

  3. Nice share. One-hundred ten pages is long with a lot of legalise…I read the Table of Contents first and then skimmed and re-read the most important sections to me. They were going to do something, whether or not MT thinks it's a good idea. This is a better plan than the previous one, I suppose. Meh.

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