QandO has a table up of a comparison between the Paulson plan floated last week and the one that is supposedly the final version:
| Issue | Paulson Plan | Frank-Dodd | Final Bill |
|---|---|---|---|
| $ | 700B with no strings. | 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, certified by the President. 350B – Available ONLY upon Congressional action. |
| Insurance (House Republican Model) | NONE | NONE | Requirement to establish mandatory insurance/guarantee program at no expense to the taxpayer. “Pay to play” for participating companies, based on risk. Outlays reduced by premiums collected. |
| Executive Compensation | Not Specifically Addressed | 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. Creation of a Special Inspector General Creates a financial stability oversight board Implements strict conflict of interest and unjust enrichment rules 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. |
See author page
Does this still smell like a …. sandwich for the taxpayers?
You know, if you aren’t man enough to face what caused the problem, you sure as hell aren’t man enough to fix the problem. Does it single out the cause? Who? How?
This is a s**t sandwich. NO rules and the same idiots who set this catastrophe up. They have no ears.
Pages 21 & 22
ø(d) TRANSFER OF A PERCENTAGE OF PROFITS.—
19 ¿
20 ø(1) DEPOSITS.—Not less than 20 percent of
21 any profit realized on the sale of each troubled asset
22 purchased under this Act shall be deposited as pro23
vided in paragraph (2).¿
24 ø(2) USE OF DEPOSITS.—Of the amount re25
ferred to in paragraph (1)—¿
22
O:\AYO\AYO08B94.xml [Discussion Draft]
1 ø(A) 65 percent shall be deposited into the
2 Housing Trust Fund established under section
3 1338 of the Federal Housing Enterprises Regu4
latory Reform Act of 1992 (12 U.S.C. 4568);
5 and¿
6 ø(B) 35 percent shall be deposited into the
7 Capital Magnet Fund established under section
8 1339 of that Act (12 U.S.C. 4569).¿
9 ø(3) TRANSFER TO TREASURY.—Revenues of,
10 and proceeds from the sale of troubled assets pur11
chased under this Act, øor from¿ the sale, exercise,
12 or surrender of warrants or senior debt acquired
13 under section ø113¿ shall be paid into the general
14 fund of the Treasury for reduction of the public
15 debt.¿
Bailout Bill Text – First (not final) version received by Porkbusters from a reliable Hill source Sunday afternoon
… assuming there is any profit, of course. Buying over leveraged paper – even at a discount – for prices that were too high to begin with. Dunno…. looks like they’re all still believing in the Easter Bunny.
Then what… we increased the nat’l debt, devalued the dollar (causing higher oil bbl prices and increased costs of everything), and have zip to show for it all.
As they say… they are clueless if this will work. Pretty darned risky to roll the dice on the taxpayers dime.
I still think they should not pass the bailout… it is a bad plan, no matter how much they try to make it better, it is still no good.
Anyways, only Obama knows how to get some money… lol
THE COLOR OF MONEY
http://www.youtube.com/watch?v=fb1SGOs3jfM.
Remember how the S&L’s went bust when the rules on renatl deductions were changed by these very same Democrats? One thing I have wondered, why not re-implement the same IRS rules that caused the RTC in the 70s to be formed? Lots of prime rental investment property out there now.
The thing about the old regs, Mr. bill-tb, is that is was a different lending era. Back then, they couldn’t package and inter-sell the loans. Securitization, as they call it. So old regs and old fixes don’t work today.
I smell Rats in Congress. Red Flags are going up everywhere.
Time to rip the lid off of this can of worms!
Why are they trying to pass this bill so fast?
The only ultimate ‘crisis’ I see is the closure of the subprime credit market.
That would be a GOOD thing, considering that is what caused this mess, but I doubt the sub prime market is what is shoring up our economy, and if it is, then that has to end anyway as shaky credit is NOT an investment, it is a risky gamble, NOT a foundation for a stable & strong economy!
We need to demand mandatory prison sentences for any elected government representative who betrays the public’s trust or acts outside her best interests.
With no painful penalties, these abuses will continue to occur undeterred.
Obama connected to Fannie Mae CEOs
Who sent money to Obama’s Campaign who are connected to the recent (and future?) Bail Outs and why?
http://www.youtube.com/watch?v=fb1SGOs3jfM
Why is most of Congress being shut out of the Bail Out negotiations & not provided any details, yet asked to vote o behalf of us?
http://www.youtube.com/watch?v=S27yitK32ds
Am I the only one who smells a skunk?