Deal Reached on Bailout?
Hot Air explains everything well, but here is the basics:
A summary of the tentative agreement released by Ms. Pelosi’s office said the plan “gives taxpayers an ownership stake and profit-making opportunities with participating companies; puts taxpayers first in line to recover assets if a participating company fails; (and) guarantees taxpayers are repaid in full — if other protections have not actually produced a profit.” (See Ms. Pelosi’s summary.)
Additionally, the summary said the legislation will expand the range of firms that can sell troubled assets to the government to include pension plans, local governments and community banks serving “low- and middle-income families.” …
The summary issued by Ms. Pelosi’s office said the legislation will include provisions giving Treasury the ability to work with cash-strapped homeowners whose mortgages are purchased by the federal government to refinance into a more affordable mortgage. Other foreclosure-prevention measures included in the agreement are an extension of the tax holiday for homeowners who face foreclosure, as well as a tax break for community banks who held shares of Fannie Mae and Freddie Mac. The rescue plan will allow affected banks to take an immediate tax deduction on losses from investments in the two firms, which were taken over by the federal government earlier this month.
Lawmakers also included provisions allowing them to keep a close eye on the Treasury program, including a bipartisan oversight board appointed by members of both parties in Congress, an inspector general to monitor Treasury decisions, and regular audits from the Government Accountability Office. Additionally, Treasury will be required to make transactions made through the troubled asset program available publicly online. Unlike the original Treasury proposal, which would have given the department legal immunity in the program, the tentative agreement reached late Saturday allows for judicial review of Treasury decisions.
Most of the pork got stripped from it too, so that’s good.
The funding of the Housing Trust Fund, the slush fund that feeds ACORN and La Raza, is out. You can thank House Republicans for enough obstructionism to get that result. Other changes made to the final version of the bailout, according to a source on the Hill, were the removal of several provisions:
Provision to provide unions and other activist groups with proxy access for corporate boards
Provision to mandate shareholder votes on compensation issues (union priority)
Diversion of funds into a housing fund to support left-wing activist groups like ACORN
A provision to allow trial judges to arbitrarily adjust mortgages, creating bonanza for trial lawyers
A provision to require the government to sell to state and local governments at a discount homes the government acquires as a result of foreclosure
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Posted by Jay on September 28, 2008 12:43 pm
» Filed Under 1st Amendment, Communism, Democrats, Earmarks, Economy, Fiscal Responsibility, Nancy Pelosi, News, Politics As Usual, Socialism, Taxes
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