Financial Briefs

Breaking financial news from Wall Street to Main Street

Key details of emerging bipartisan bailout plan

Posted by financialbriefs on September 25, 2008

A bipartisan group of lawmakers agreed Thursday to the outlines of a $700 billion bailout for the financial industry that makes several substantial changes to President Bush’s request. Key Republicans were still resisting the emerging agreement. Here are its main elements:_Authorize $700 billion for the government to purchase troubled assets and buy equity in distressed financial firms.

_Require the Treasury Department to make rules to prevent excessive compensation for executives whose companies benefit from the rescue.

_Establish a strong oversight board with authority to halt the program, a special investigator general to monitor it, and regular government audits.

_Require the government to renegotiate mortgages it acquires under the program with the aim of helping borrowers keep their homes.

_Phase in the money for buying troubled assets, with $250 billion available immediately, $100 billion to be released if the Treasury secretary certifies it is needed, and the last $350 billion available with another certification, but subject to a congressional vote to block it.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: