Blunt Gives Side-by-Side Details of Final Bill

NRO-The Corner ^ | 9/28/08 | Kathryn Lopez

[Thane_Banquo]

A side-by-side (it's a Word doc) on the various plans, from Roy Blount's office.

[Thane_Banquo]

I am much more supportive of this than the Paulson bill. This makes the insurance program mandatory AND PAULSON ONLY GETS $350 BLN. He has to go back and ask for the other $350 bln from Congress.

[Miss Didi]

Since you’re the finance expert, this won’t make us scream?

[101voodoo]

Can’t open link. Error message corrupt link

[GreaterSwiss]

Still a crappy plan

I look forward to his future replacement (Cantor or Pence) who is a real republican.

[avacado]

"Since you’re the finance expert, this won’t make us scream?"

Excellent question. On the "scream meter" of 1 to 10... how loud are we going to scream?

[aragona]

IF this word doc is legit, ACORN is out, insurance is mandatory. It appears to meet most of the House Repubs issues. Thanks to Blunt’s office for publishing facts.

[goldstategop]

After reading it, I think its a pretty good bill! Its not perfect but it turns out the market provisions are mandatory as opposed to merely optional. And the Treasury Secretary will not get all the money he wanted upfront and there will be oversight. Its about the best that could be achieved under the current circumstances. I would rather have no bailout at all but the enemy of the good is insistence on the perfect.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[whitedog57]

Thank God Acorn is out.

[whitedog57]

Thank God Acorn is out.

[palmer]

If after 5 years the government has a net loss of taxpayer funds as a consequence of the purchase program, the President will be required to submit a legislative proposal to recoup such funds from program beneficiaries.

And if after 5 years donuts don't start falling from the sky, we'll all fly up in the air and levy taxes on the clouds.

[FlingWingFlyer]

Man. FOX “news” is in Full Obama mode this morning. I guess they’re getting the “tingle.”

[org.whodat]

You were after a bail out from day one.

[Thane_Banquo]

Well, the insurance program is much better. Still $350 bln. to Wall Street, but that's half of what Paulson Goldman Sachs asked for. They have to go back to Congress for the rest.

I think a number of firms will prefer the insurance program, because it will allow them to secure the profits quickly from assets that are valued at an irrationally low level. If the amount of assets insured counts against the $350 bln, that would be a huge coup.

[uncommonsense]

Affordable Housing Slush Fund (ACORN Fund). OUT.

[Zeddicus]

I’m still skeptical - what exactly does it mean that the “market provisions are mandatory”? And exactly what is the initial $350b going to be used for? At the end of the day, are we still buying mortgage messes?

[Perdogg]

250B – Immediately available to the Secretary.
100B – Available upon report to Congress.
350B – Available ONLY upon Congressional action.

Requirement to establish mandatory insurance/guarantee program at no expense to the taxpayer. “Pay to play” for participating companies, based on risk.

250B – Immediately available to the Secretary.
100B – Available upon report to Congress.
350B – Available ONLY upon Congressional action.

Requirement to establish mandatory insurance/guarantee program at no expense to the taxpayer. “Pay to play” for participating companies, based on risk.

Workable prohibitions on executive compensation to ensure bad actors are not rewarded. In a total takeover (like what happened with AIG), there will be no golden parachutes or severance pay. For equity participation, over $300M total ban for top 5 executives on golden parachutes and tax deduction limit on compensation above $500,000.

Establishment of bipartisan oversight commission, split evenly between minority and majority.
Practical reporting requirements to ensure proper reports to Congress and the public.

“Say on Pay”
Union Take Over of Corporate Boards;Affordable Housing Slush Fund (ACORN Fund);Bankruptcy “Cramdown” (aka, trial bar give-away); - OUT

If after 5 years the government has a net loss of taxpayer funds as a consequence of the purchase program, the President will be required to submit a legislative proposal to recoup such funds from program beneficiaries.

[ari-freedom]

and it wouldn’t have happened if the House GOP didn’t scream and make a fuss and said “wait a minute! let’s think this through and find an alternative”

[Doug TX]

I’m scratching my head....what are the dems getting out of the bill? According to this document, the dems are giving up everything sans a few oversight comprimises.

I don’t know if this doc represents the details of the bill accurately....not making an accusation, just want to see the official bill.

[Not gonna take it anymore]

is it the word doc you can’t open?

[NoGrayZone]

Oh please, like they’re going to say no to more money? Screw that.

[jrooney]

Something has to be done, unless you want our economy crushed, a recession and a democrat in the White House. This bill sounds a lot better and under the circumstances I support it.

[InterceptPoint]

Hope this works. From the Word doc to FR:

Side-by-Side Comparison of Rescue Legislation        

Issue	Paulson Plan	Frank-Dodd	Final Bill
$	700B	700B – Delivered in 150B traunches that can be delayed by  Congressional disapproval (and a Presidential signature)	250B – Immediately available to the Secretary. 100B – Available upon report to Congress. 350B – Available ONLY upon Congressional action.
Insurance (House Republican Mode)			Requirement to establish mandatory insurance/guarantee program at no expense to the taxpayer.  “Pay to play” for participating companies, based on risk.
Executive Compensation		Far reaching executive compensation standards that would affect companies not even involved in this financial crisis.  Additionally, the bill lowered the deduction on executive pay to $400,000 for ALL companies.	Workable prohibitions on executive compensation to ensure bad actors are not rewarded. In a total takeover (like what happened with AIG), there will be no golden parachutes or severance pay.  For equity participation, over $300M total ban for top 5 executives on golden parachutes and tax deduction limit on compensation above $500,000.
Oversight/Transparency		Onerous, unworkable and repetitive reporting and oversight requirements, hindering proper implementation of program.	Establishment of bipartisan oversight commission, split evenly between minority and majority. Practical reporting requirements to ensure proper reports to Congress and the public.   If after 5 years the government has a net loss of taxpayer funds as a consequence of the purchase program, the President will be required to submit a legislative proposal to recoup such funds from program beneficiaries.
“Say on Pay” Union Take Over of Corporate Boards		So-called “say on pay” or “proxy access” which propose to mandate a nonbinding shareholder vote on proxy access and other corporate governance issues for all companies in which the Treasury Department buys a direct stake in certain assets.	OUT
Affordable Housing Slush Fund (ACORN Fund)		Included a giveaway that would force taxpayers to bankroll a slush fund for ACORN – an organization fraught with controversy for, among other scandals, its fraudulent voter registration activities on behalf of Democratic candidates.	OUT
Bankruptcy “Cramdown” (aka, trial bar give-away)		Included so-called “cramdown” provisions allowing bankruptcy judges to reduce mortgage principal under the guise of helping those at risk of foreclosure.  If enacted into law, the provision would be a bonanza for trial lawyers and undercut the effectiveness of any economic recovery effort by making it even harder to value mortgage-backed securities.	OUT

 

Mark-to-Market Accounting			GAO study on the impacts of mark-to-market accounting standards and effects on the banking crisis.  Restatement of existing authority to suspend mark-to-market.
Equity/Warrants		Mandatory equity interest in all participating firms.	Mandatory equity interests in total takeover scenario.  Proportional equity interest based on percentage of assets sold if deemed appropriate Secretary.
Tax benefits for community banks			Ability for community banks to take capital losses on GSE assets against ordinary income.

 

[Thane_Banquo]

I’m scratching my head....what are the dems getting out of the bill?

They are getting to go home without having this albatross hung solely around their necks.

[ari-freedom]

much better than original which would have:
Far reaching executive compensation standards that would affect companies not even involved in this financial crisis.

sorry commies!

[Sooth2222]

$700 billion to $250 billion. By that alone, the House Republicans did well.

Will the Dems continue to "blame" (credit) McCain with the non-breakdown of the original non-agreement? I hope so, but I have my doubts.

[4rcane]

is all profit going to retiring debt ?

[tsmith130]

Dave Ramsey (and I believe Newt) has said that the “insurance” is a good idea and would remove 2/3rds of the problem. He (and Newt) also believe that the removal of the “mark to market” rule (which is way above my paygrade) needs to be gone. What you posted looks like it makes a pretty good attempt at both of these items.

[goldstategop]

I'm against a bailout. So what's your alternative? To just let the economy tank and people lose their savings, their businesses and their jobs? The truth is none of us like the fact the government has to stabilize the financial markets. But the consequences of doing nothing at all are just too terrible to contemplate.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[GreaterSwiss]

-Our economy will not be crushed. I work in finance, have graduate degrees, and certifications. We will enter a normal recession. This plans props up income and property values for more taxation. In a recession the government and private companies cuts away inefficent programs for future growth. Not doing so prolongs things = depression.

Our party must be the party of the individual. It must not sell out the individual to cater to the group. No greater challenge faces our society today than ensuring that each one of us can maintain his dignity and his identity in an increasingly complex, centralized society.

Extreme taxation, excessive controls, oppressive government competition with business, galloping inflation, frustrated minorities and forgotten Americans are not the products of free enterprise. They are the residue of centralized bureaucracy, of government by a self-anointed elite.

Our party must be based on the kind of leadership that grows and takes its strength from the people. Any organization is in actuality only the lengthened shadow of its members. A political party is a mechanical structure created to further a cause. The cause, not the mechanism, brings and holds the members together. And our cause must be to rediscover, reassert and reapply America’s spiritual heritage to our national affairs.

[Iron Munro]

What do you mean by “Market Provisions”?

Is this it?

“GAO study on the impacts of mark-to-market accounting standards and effects on the banking crisis. Restatement of existing authority to suspend mark-to-market.”

This sounds sort of nebulous.

[NoControllingLegalAuthority]

We don't have enough information to judge if the provisions of the insurance are in fact mandatory. I had heard a number of these provisions were OPTIONAL.

This comparison is a spreadsheet-type summary.

Where is the text of the actual bill?

[whitedog57]

It still doesn’t address the primary cause of the problem - borrower greed and misbehavior. After all, THEY borrowed the money — lenders didn’t put a gun to their heads.

We are treating the housing and mortgage market crisis like a bad drug prevention plan. There is no penalty to drug users (other than you may suffer or die), but we will try to reduce the amount of drugs available. Does anyone think this would work if we were trying to solve the cocaine/heroin problem?

Borrowers should suffer for their folly. But since they are voters, that isn’t going to happen.

[redstateconfidential]

HMMM, thats all I got to say. And SUCK IT ACORN/LA RAZA!

[NoGrayZone]

Boehners office said they have been typing it up since this morning and should be available later today for us to see.

For now, I don’t believe anything until I see it in writing.

[ari-freedom]

ok so let’s get this over with

man this really wasn’t what this election was supposed to be about

[1curiousmind]

“I’m scratching my head....what are the dems getting out of the bill?”

_______________________

Perhaps an agreement not to call for an investigation as to the extent of their involvement in the whole mess.

[muawiyah]

The Dems know that laws may be changed in the future. They believe they will win the Presidency, or at worst, a veto proof Congress.

They are giving up nothing other than October/November/December/January.

[misharu]

Frank/Dodd?!!! Are those two bandits getting credit for this?

[XR7]

It is still a big rip-off of the American taxpayer.
An outrage!
But who’s gonna do anything about it?
Will McCain vote against it?
Or “present”?

[woofie]

Thank God Acorn is out.

But will the nuts be hurt in all this?

[Thane_Banquo]

Market provisions are mandatory, meaning the Treasury is required to create the market-paid insurance program.

[goldstategop]

I mean the insurance and the suspension of mark to market rule. They are mandatory and go a long way towards fixing the root of the crisis. Its not just all on the taxpayers. So I'm mostly pleased with it.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Wilhelm Tell]

Tell me this is really, really what the Democrats agreed to sign-off on and not just a Republican wish-list? Is this the real deal (as far as we can determine now)?

[Sooth2222]

I’m scratching my head....what are the dems getting out of the bill?

They will not see ads that begin "President Bush and the Democrats in Congress gave $700 billion of your tax dollars to bail out Wall Street's millionaire executives...."

Pity, but I guess it's better than bread lines.

[SandRat]

Opened for me.

[silverleaf]

Thanks- makes it pretty easy to compare
Keep calling the stinker plan the “Pelosi-Reid-Dodd-Frank Goldman Sachs Bail Out”

[Thane_Banquo]

It still doesn’t address the primary cause of the problem - borrower greed and misbehavior. After all, THEY borrowed the money — lenders didn’t put a gun to their heads.

Market will solve that itself by never again extending mortgage credit to risky borrowers. "Liar loans" are dead. Market is no longer extending credit to subprime borrowers, and I doubt there will be much more than a tiny market for such mortgages going forward.

[Wiseghy]

With these provisions, only the most desperate companies will take advantage.
This seems rational to me, but expect the MSM to criticize the Repub. changes as making the real estate pool more “toxic”.

[oblomov]

Looks like one way to play this is to buy stock in selected community banks. The entire sub-sector has been beaten down mercilessly.

[Thane_Banquo]

The Frank/Dodd bill is being compared to the final bill that will be put forward.