From the ACTUAL democratic Proposal as it stands right now

(e) PREVENTING UNJUST ENRICHMENT.—In making
17 purchases under the authority of this Act, the Secretary
18 shall take such steps as may be necessary to prevent un19
just enrichment of financial institutions participating in
20 a program established under this section, including by pre21
venting the resale of a troubled asset to the Secretary at
22 a higher price than what the seller paid to purchase the
23 asset.

SEC. 102. CONSIDERATIONS.
2 In exercising the authorities granted in this Act, the
3 Secretary shall take into consideration—
4 (1) providing stability or preventing disruption
5 to the financial markets or banking system;
6 (2) the need to help families to keep their
7 homes and to stabilize communities;
8 (3) in determining whether to engage in a di9
rect purchase from an individual financial institu10
tion, the long-term viability of the financial institu11
tion in determining whether the purchase represents
12 the most efficient use of funds under this Act;
13 (4) ensuring that as many financial institutions
14 as possible participate in the program, without dis15
crimination against financial institutions based on
16 their size, geographic operation, or the size, type,
17 and number of assets eligible for purchase under
18 this Act;
19 (5) providing assistance to financial institu20
tions, including those serving low- and moderate-in21
come populations and other underserved commu22
nities, and that have assets less than
23 $1,000,000,000 that were well or adequately capital24
ized as of June 30, 2008, and that as a result of
25 the devaluation of the preferred government-spon26
sored enterprises stock will drop one or more capital
levels, in a manner sufficient to restore the financial
2 institutions to at least an adequately capitalized
3 level;
4 (6) the need to ensure stability for United
5 States public instrumentalities, such as counties and
6 cities, that may have suffered significant increased
7 costs or losses in the current market turmoil;
8 (7) the need to protect the interest of the tax9
payers, taking into account the impact on the econ10
omy, jobs, savings, and pensions;
11 ø(8) student loans;¿
12 (9) that nothing in this Act prevents the Sec13
retary from protecting the retirement security of
14 Americans by purchasing troubled assets that a fi15
nancial institution holds or manages on behalf of a
16 cash or deferred øarrangement¿ that meets the re17
quirements of section 401(k) of the Internal Rev18
enue Code of 1986, pension, or other retirement
19 plan; and
20 (10) the utility of purchasing other real estate
21 owned and instruments backed by mortgages on
22 multifamily properties.

Discuss, now that we have the same sheet of music

I don't see anything that could compel him not to do anything he wants... or to do anything he doesn't want..

Am I wrong?

1 SEC. 103. FINANCIAL STABILITY OVERSIGHT BOARD.
2 (a) ESTABLISHMENT.—There is established the Fi3
nancial Stability Oversight Board, which shall be respon4
sible for—
5 (1) reviewing the exercise of authority under a
6 program developed in accordance with this Act, in7
cluding—
8 (A) all actions taken by the Secretary and
9 the Office of Financial Stability created under
10 section 101, including the appointment of finan11
cial agents, the designation of asset classes to
12 be purchased, and plans for the structure of ve13
hicles used to purchase troubled assets; and
14 (B) the effect of such actions in assisting
15 American families in preserving home owner16
ship, stabilizing financial markets, and pro17
tecting taxpayers;
18 (2) making recommendations, as appropriate, to
19 the Secretary regarding use of the authority under
20 this Act; and
21 (3) reporting any fraud, misrepresentation, or
22 malfeasance to appropriate law enforcement agen23
cies.
24 (b) MEMBERSHIP.—The Financial Stability Over25
sight Board shall be comprised of—
13
O:\AYO\AYO08B68.xml
1 (1) the øChairman¿ of the Board of Governors
2 of the Federal Reserve System;
3 (2) the øchairperson¿ of the Board of Directors
4 of the Federal Deposit Insurance Corporation;
5 (3) the øchairperson¿ of the Securities and Ex6
change Commission;
7 (4) one member who is not an employee of the
8 Federal Government or any State government hav9
ing appropriate financial expertise in both the public
10 and private sectors, appointed jointly by the major11
ity leader of the Senate and the Speaker of the
12 House of Representatives; and
13 (5) one member who is not a government em14
ployee, having appropriate financial expertise in both
15 the public and private sectors, appointed jointly by
16 the minority leader of the Senate and the minority
17 leader of the House of Representatives.
18 (c) CHAIRPERSON.—The chairperson of the Financial
19 Stability Oversight Board shall be elected by the members
20 of the Board from among the members.
21 (d) MEETINGS.—The Financial Stability Oversight
22 Board shall meet 2 weeks after the first exercise of the
23 purchase authority of the Secretary under this Act and
24 monthly thereafter.

There is oversight in this plan... there could be more, and when contacting your congress critters raise this point... but there IS oversight

here you go

http://banking.senate.gov/public/_files/LegislativeTextofChairmansDoddsproposalfortheTreasuryBailoutplanAYO08B68_xml.pdf

(2) AUTHORITIES.—Notwithstanding the au7
thority granted to the Secretary under section
8 101(a), the executive committee may direct, limit, or
9 prohibit the activities of the Secretary to carry out
10 the purposes of this Act, to the extent that the exec11
utive committee determines that such activities ar

By the way we are way over three pages by now

thanks

I still need to send a fax monday with comments

But this looks pretty descent

No wonder the Right WIng Republicans are screaming... and it draws very much form the 1932 legislation as well as the Swedish model

NO WONDER they are screaming

Just wished our side bothered to read this... with thesaurus is need be

SEC. 106. CONTRACTING PROCEDURES.
15 (a) STREAMLINED PROCESS.—In awarding contracts,
16 including contracts to asset managers, servicers, property
17 managers, and other service providers or expert consult18
ants, that would otherwise be subject to the Federal Ac19
quisition Regulation, the Secretary may instead design a
20 streamlined process, and shall solicit proposals from a
21 broad range of qualified vendors interested in performing
22 the work.
23 (b) ADDITIONAL CONTRACTING REQUIREMENTS.—In
24 soliciting and awarding contracts authorized under the au25
thority provided in subsection (a), the Secretary shall de21
O:\AYO\AYO08B68.xml
1 velop and implement standards and procedures to ensure,
2 to the maximum extent practicable, the inclusion and utili3
zation of minorities (as such term is defined in section
4 1204(c) of the Financial Institutions Reform, Recovery,
5 and Enforcement Act of 1989 (12 U.S.C. 1811 note)) and
6 women, and minority- and women-owned businesses (as
7 such terms are defined in section 21A(r)(4) of the Federal
8 Home Loan Bank Act (12 U.S.C. 1441a(r)(4)), in all
9 business and activities provided for under this Act (includ10
ing contracts to asset managers, servicers, property man11
agers, and other service providers or expert consultants).
12 Any streamlined processes established by the Secretary for
13 review and evaluation of contract proposals shall include
14 a component that gives consideration to the diversity of
15 the applicant.

(D) PROTECTIONS.—Any warrant rep9
resenting securities to be received by the Sec10
retary under this subsection shall contain anti11
dilution provisions of the type employed in cap12
ital market transactions, as determined by the
13 Secretary. Such provisions shall protect the
14 value of the securities from market transactions
15 such as stock splits, stock distributions, divi16
dends, and other distributions, mergers, and
17 other forms of reorganization or recapitaliza18
tion.

ø(c) FAST TRACK CONSIDERATION.—¿
17 ø(1) IN GENERAL.—Notwithstanding any other
18 provision of this section, the Secretary may not exer19
cise any authority to make purchases under this Act
20 with regard to any amount in excess of
21 $350,000,000,000 previously obligated, as described
22 in this section if, within ø15¿ calendar days after
23 the date on which Congress receives a report of the
24 Secretary described in subsection (a)(3), Congress
40
O:\AYO\AYO08B68.xml
1 enacts a joint resolution disapproving the plan of the
2 Secretary with respect to such additional amount.¿

øSEC. 115. OVERSIGHT AND AUDITS.¿
20 (a) COMPTROLLER GENERAL OVERSIGHT.—
21 (1) SCOPE OF OVERSIGHT.—The Comptroller
22 General of the United States shall, upon establish23
ment of the troubled assets relief program under
24 this Act (in this section referred to as the ‘‘TARP’’),
25 commence ongoing oversight of the activities and
45
O:\AYO\AYO08B68.xml
1 performance of the TARP and of any agents and
2 representatives of the TARP (as related to the agent
3 or representative’s activities on behalf of or under
4 the authority of the TARP), including vehicles es5
tablished by the Secretary under this Act. The sub6
jects of such oversight shall include the following:
7 (A) TARP’s performance in meeting the
8 goals set out in this Act, particularly those in9
volving foreclosure mitigation, consumer protec10
tion, cost reduction, and stabilization of the fi11
nancial system.
12 (B) The financial condition and internal
13 controls of the TARP, its representatives and
14 agents.
15 (C) Characteristics of transactions and
16 commitments entered into, including trans17
action type, frequency, size, prices paid, and all
18 other relevant terms and conditions, and the
19 timing, duration and terms of any future com20
mitments to purchase assets.
21 (D) Characteristics and disposition of ac22
quired assets, including type, acquisition price,
23 current market value, sale prices and terms,
24 and use of proceeds from sales.
46
O:\AYO\AYO08B68.xml
1 (E) Efficiency of the TARP’s operations in
2 the use of appropriated funds.
3 (F) Compliance with all applicable laws
4 and regulations by TARP, its agents and rep5
resentatives.
6 (G) TARP’s efforts to prevent, identify,
7 and minimize conflicts of interest involving any
8 agent or representative performing activities on
9 behalf of or under the authority of the TARP.
10 (H) The efficacy of contracting procedures
11 established under section 106, including
12 TARP’s efforts in evaluating proposals for in13
clusion and contracting to the maximum extent
14 possible of minorities, women, and minority15
and women-owned businesses, including
16 ascertaining and reporting the total amount of
17 fees paid and other value delivered by TARP to
18 all of its agents and representatives, and such
19 amounts paid or delivered to such firms that
20 are minority- and women-owned businesses (as
21 such terms are defined in section 21A of the
22 Federal Home Loan Bank Act (12 U.S.C.
23 1441a)).

øSEC. 118. JUDICIAL REVIEW.¿
5 ø(a) IN GENERAL.—¿
6 ø(1) STANDARD.—Actions by the Secretary
7 pursuant to the authority of this Act shall be held
8 unlawful and set aside only if found to be arbitrary,
9 capricious, or otherwise inconsistent with the law or
10 øan abuse of discretion, or not in accordance with
11 the law¿.¿
12 ø(2) LIMITATION ON EQUITABLE RELIEF.—
13 Other than in cases involving constitutional claims,
14 no injunction or other form of equitable relief shall
15 be issued against the Secretary for actions pursuant
16 to the authority of this Act except under extraor17
dinary circumstances involving clearly irreparable
18 harm or øinjury¿.¿
19 ø(3) STAYS.—øOther than in cases involving
20 constitutional claims,¿ Any injunction or other form
21 of equitable relief that is issued shall be automati22
cally stayed until the Secretary has had the oppor23
tunity to seek a stay from a higher court and such
24 higher court has ruled on the stay.¿

(d) PROGRAM GUIDELINES.—Before the earlier of
the end of the 2-business day period beginning on the date
of the first exercise of the authority under this section or
the end of the 30-day period beginning on the date of the
enactment of this Act, the Secretary shall publish program
guidelines, including the following:
(1) Mechanisms for purchasing troubled assets.
(2) Methods for pricing and valuing troubled
assets.
(3) Procedures for selecting asset managers.
(4) Criteria for identifying troubled assets for
purchase.


Hank Paulson makes the important decisions, then TELLS Congress what he decided.

but that is ok

I am POSITIVE you will keep saying this is 900 B Bailout... when it is NOT

Hank Paulson decides

Which securities to buy,

From Who,

and for How Much.

Two days AFTER he begins he has to publish what guideline he's using.

Oh, and he can't pay more than the face value.

structurally they don't do that. Read the US Constitution and this little thing called SEPARATION OF POWERS...

Free clue... Treasure is part of the Executive... so their OVERSIGHT is how the DO IT. And the OVERSIGHT part of the statue is QUOTED in the thread already

This IS civics 101.

:banghead:

Oh and THIS is as close as they can get under the Constutiton

ø(2) CONTENTS OF RESOLUTION.—For the
4 purpose of paragraph (1), ‘‘joint resolution’’ means
5 only a joint resolution introduced after the date on
6 which the report of the Secretary referred to in sub7
section (a)(3) is received by Congress, the matter
8 after the resolving clause of which is as follows:
9 ‘‘That Congress disapproves the obligation of any
10 amount exceeding the amounts obligated as de11
scribed in paragraphs (1) and (2) of section 114(a)
12 of the Economic Recovery and Corporate Account13
ability Act of 2008.’’.¿
14 ø(3) REFERRAL TO COMMITTEE.—A resolution
15 described in paragraph (2) introduced in the House
16 of Representatives shall be referred to the Com17
mittee on Financial Services of the House of Rep18
resentatives. A resolution described in paragraph (2)
19 introduced in the Senate shall be referred to the
20 Committee on Committee on Banking, Housing, and
21 Urban Affairs of the Senate. Such a resolution may
22 not be reported before the 8th day after its introduc23
tion.¿

:shrug:

they are doing what the LEGISLATIVE branch does... this means a structure for the executive to do this. I trust Paulson as far as I can throw them... but I suspect this is not exactly what Paulson will get to play with.

By the way supervision includes the GAO

This is the way it is.

provision.

The LEAST they should have done was to have Paulson submit guidelines before they appropriated the money.

not guaranteeing it will be there by the end of negotiations, but it is there

Oh and call congress and let them know that

EXECUTIVE, that constitution thing.

Read the GAO and the rest of it. But the supervision is there.

What you want, specifically comes under separation of powers

Congress knows that when Paulson starts buying bad debt, I mean really bad debt, there will be Hell to pay, so they're leaving the lame duck Bush take all the political heat.

that is all I can say right now. Congress does not have executive power to do that...

got it

and be informed, or choose to remain uninformed

your choice... but as a CITIZEN it behooves you TO READ IT

øSEC. 114. GRADUATED AUTHORIZATION TO PURCHASE.¿
14 ø(a) AUTHORITY.—The authority of the Secretary to
15 purchase troubled assets under this Act shall be limited
16 as follows:¿
17 ø(1) Effective upon the date of the enactment
18 of this Act, such authority shall be limited to
19 $250,000,000,000 outstanding at any one time.¿
20 ø(2) If at any time, the President submits to
21 the Congress written notification that the Secretary
22 is exercising the authority under this paragraph, ef23
fective upon such submission, such authority shall be
24 limited to $350,000,000,000 outstanding at any one
25 time.¿
39
O:\AYO\AYO08B68.xml
1 ø(3) If at any time the President submits to
2 the Congress a written report detailing the plan of
3 the Secretary to exercise the authority under this
4 paragraph, unless there is enacted, within ø15¿ cal5
endar days of such submission, a joint resolution de6
scribed in subsection (c), effective upon the expira7
tion of such ø15-day¿ period, such authority shall be
8 limited to $700,000,000,000 outstanding at any one
9 time.¿

about spending too much money on short notice. What it the LOWEST amount needed to get it off the ground?

are authorizing... assuming this goes through and yes it is very much new deal

Will need to take notes and send faxes tomorrow, to the Committees, I am sure they still have fax machines on

Seriously- is there going to be a part in it where they bail out my debt- and people like me? You know, the rabble who actaully votes for these DEMS from time to time?

I'm just some dumb middle class guy- I dont understand hardly a word of this proposal- I'm glad the DEMS are writing up some fancy stuff that helps millionare Republican bankers, but I need some help too.

Opps- sorry for "DEM bashing." I'll shut up now and prepare to hand MORE of my money I dont have over to some billionare, Republican bankers.

Politics is a game of give & take-right? If so, where is the chunk of cash for the middle class & working poor in this proposal?

there are provisions in here that will protect homeowners and keep them in their homes

They are also dealing with student and credit card debt (from other reports, I still need to get there... in the actual legalese)

In the long term there are also provisions that when they finally sell assets back, part of it goes to the treasury to pay the deficit. Yes they used language that will make that happen


And you are right in one sense, they are doing a lousy job of 'splaining this to the average joe. I am glad I took courses where we read bills and learned to decipher them

Oif, I haven't done this bill readying in years... decades... and I know that in the fast readying I might be missing something. Yes, the place of a coma is that important in these things

there are provisions in here that will protect homeowners and keep them in their homes

They are also dealing with student and credit card debt (from other reports, I still need to get there... in the actual legalese)

In the long term there are also provisions that when they finally sell assets back, part of it goes to the treasury to pay the deficit. Yes they used language that will make that happen


And you are right in one sense, they are doing a lousy job of 'splaining this to the average joe. I am glad I took courses where we read bills and learned to decipher them

Oif, I haven't done this bill readying in years... decades... and I know that in the fast readying I might be missing something. Yes, the place of a coma is that important in these things

Seriously- you actually adressed some of what I was trying to say!

I'm very interesting in seeing what bone they throw as to student and credit card debt as well- if true, and if it is something substantial, that is encouraging...

Then again, these things I havent even seen yet are merely "proposals" and not action at this point...

As I said, I did a very fast read... I need to print this and read it carefully, for those periods and comas... but it is also a proposal

Time to tell them what we like and what we don't

situations cause it'd be a "dealbreaker" for republicans.

I need to scream at the answering machine for the speaker.

She's an idiot

as well as scream at the comment line

Removing bankruptcy projection from the bill to rescue the economy just because Boehner and the rest of the GOP hard core right have a problem is a mistake

This will be a give away to Wall Street before we know it. This is a big mistake... if you give them an inch they'll take the whole house. You just walked into a trap.

In fact, we need a WPA program as well as living wage, (modernization of the Wagner Act)

We are here because of free market fanatics, who still push your buttons. Jesus age, when will you folks learn? You work for us! Not the for ever wrong RIGHT WING Republicans!

You want to loose even folks like me WHO GET IT why something needs to happen... go ahead, surrender to the GOP on this CRITICAL point.

*****

yesterday.

Emphasis added

---

Why should we pay for Wall Street's trading mistakes? If I bought something at $X and it's value over time became $X-Z where both Z and X are positive numbers, nobody in the government offered to buy my asset at X dollars, all I could ever get was their current value!

(This is my response to the first paragraph, which says that the government will pay no more than the value the company put into them -- the core of the problem is that the assets are now worth less than the price the company paid)

Don't chase good money after bad. Cut the losses -- don't extend them in perpetuity.

Buy low, sell high! The first paragraph in the OP fails this siimple test.

understood by the general public, as you note yourself above. I will rely on my usual sources on the left to parse out what it means. They have a track record.

And like Dr. Fate, I don't trust 99% of the bought and sold Congress to protect ordinary taxpayers, or to include provisions for a "rescue" of Main Street and the real economy that most of us live in. They are too in thrall to their Corporate campaign donors. There is no chance of avoiding some sort of Wall St. Bail-Out, but it can be structured to benefit the citizenry who's needs for jobs, health care, roads, clean water, bridges, schools, have all been starved by the pols on both sides of the isle to benefit our Corporate Masters and the super-wealthy. I have very little doubt that most of this Bill will do the same.

the federalist and the antifederatists are proof of that

Long gone are those days

Perhaps this country is not ready for self government serious

Yes I can translate some of this, but a citizen should read this... even if you need a thesaurus and a dictionary

These Bills are not written for ordinary people to interpret, and you know it. You admit as much yourself in an earlier post. And just how many "citizens" have the time to sit down with a "thesaurus and a dictionary" - which will not be of that much use; these are written for lawyers to parse out - to read 101 pages? Or even 10 pages in language not even meant for them to understand?

As for self-governance, I think the over-whelming "Main Street" reaction to this Bail-Out is a pretty good sign that most citizens are not quite so dumb as our Corporate Masters like to suppose - at least not when their own pocket is being quite deliberately and blatantly picked clean of even the lint.

For example, Goldman Sachs becomes a financial agent of the U.S. Government?



Let me guess, a part of the Executive Branch, additionally with Executive Privilege to ignore subpoenas, perhaps?

Will Bush or the Reps chip away at it?

exactly what the House Republicans are trying to do

At this point I think Bush is not even a player any more

Dammit.

1 SEC. 123. MINIMIZING FORECLOSURES.
2 (a) SPECIAL RULES FOR MODIFICATION OF LOANS
3 SECURED BY RESIDENCES.—
4 (1) IN GENERAL.—Section 1322(b) of title 11,
5 United States Code, is amended—
6 (A) in paragraph (10), by striking ‘‘and’’
7 at the end;
8 (B) by redesignating paragraph (11) as
9 paragraph (12); and
10 (C) by inserting after paragraph (10) the
11 following:
12 ‘‘(11) notwithstanding paragraph (2) and other13
wise applicable nonbankruptcy law—
14 ‘‘(A) modify an allowed secured claim for
15 a debt secured by the principal residence of the
16 debtor, as described in subparagraph (B), if,
17 after deduction from the debtors current
18 monthly income of the expenses permitted for
19 debtors described in section 1325(b)(3) of this
20 title (other than amounts contractually due to
21 creditors holding such allowed secured claims
22 and additional payments necessary to maintain
23 possession of that residence), the debtor has in24
sufficient remaining income to retain possession
25 of the residence by curing a default and main66
O:\AYO\AYO08B68.xml
1 taining payments while the case is pending, as
2 provided under paragraph (5); and
3 ‘‘(B) provide for payment of such claim—
4 ‘‘(i) in an amount equal to the
5 amount of the allowed secured claim;
6 ‘‘(ii) for a period that is not longer
7 than 40 years; and
8 ‘‘(iii) at a rate of interest accruing
9 after such date calculated at a fixed an10
nual percentage rate, in an amount equal
11 to the most recently published annual yield
12 on conventional mortgages published by
13 the Board of Governors of the Federal Re14
serve System, as of the applicable time set
15 forth in the rules of the Board, plus a rea16
sonable premium for risk; and’’.

Of course this is the senate bill... and all that

IDIOTS!

That part of the packet is what will get middle murica behind this

And it is not a 700B packet either....

:banghead:

Removing bankruptcy projection from the bill to rescue the economy just because Boehner and the rest of the GOP hard core right have a problem is a mistake

This will be a give away to Wall Street before we know it. This is a big mistake... if you give them an inch they'll take the whole house. You just walked into a trap.

In fact, we need a WPA program as well as living wage, (modernization of the Wagner Act)

We are here because of free market fanatics, who still push your buttons. Jesus age, when will you folks learn? You work for us! Not the for ever wrong RIGHT WING Republicans!

You want to loose even folks like me WHO GET IT why something needs to happen... go ahead, surrender to the GOP on this CRITICAL point.

*******

Do i want to bail out rich wallstreet CEO's? No. Do I want half of America to be laid off? No.

I trust Barrack Obama to do the right thing and will support him.

...and VERY RARELY give me what I want.

Which is why I'm asking all these questions. If I trusted them, I wouldnt be worried.

time to call them AGAIN...

Why oh why... do we get cowards in leadership posts?

When have they EVER STOOD UP TO HIM with any results?

Paulson proposed a week ago

Two caveats though

This is a proposal, senate proposal

There is a House Bill as well

And until this passes and is reconciled, it is not fully written in stone

I think it stinks to high heavens.

general fund to reduce the debt

That is where it is

The way I've heard it explained, if we can't recoup the full price of the asset, then we can sell the warrant to purchase some sort of equity in the bank like preferred stock. It would minimize our loss.

IMHO, the problem with the way this bill is being presented is that it sounds like it is for giving 100's of billions of dollars away while the government may actually make money in this deal over the long haul. Like you mention, those assets that we'd purchase are not valueless. They may only have 5% bad loans in them. From what I've read, the risk to our tax dollars is that no one is really clear on what is in those assets because of the way they were bundled and resold. The warrants for equity mitigate that. The problem is that the banks don't trust them enough to lend each other money based on those assets and the value of the homes in those assets have declined.

The real purpose of this plan is not to save all the wealthy banks but to get the flow of money between banks going again.

It's a bribe to the banks, so that they have the "confidence" to lend money to you. Without this bribe, which stuffs your tax $$$ into their pockets to cover their bad business decisions, they'll be more cautious about lending which will slow down the economy.

It's like paying protection money to the mob so your shop doesn't burn down.

Here's an alternative: nationalize the banks.

coming out with particularyly Galbraith's.