Bailout Deal ReachedSeptember 27, 2008 - by Donny Shaw
<img src=“http://cache.daylife.com/imageserve/01mw3cc6vffpC/610×.jpg”align=“right” width=“340” height=“240”UPDATE 3: Here’s the bill:
Emergency Economic Stabilization Act of 2008 (pdf file)
And on PublicMarkup.org here, where you can read and leave comments on particular sections or the overall bill.
Calculated Risk is excerpting and posting key parts of the bill.
The House is scheduled to vote on the bill Monday and the Senate will do so on Wednesday at the earliest.
Original post below…
It’s 1 am on Sunday morning, and congressional negotiators have just announced a tentative deal on a bailout plan for the country’s troubled financial system – The Politico:
>House and Senate negotiators have reached tentative agreement on a financial rescue plan after a marathon Capitol negotiating session that started Saturday afternoon and stretched into early Sunday morning.
>House Speaker Nancy Pelosi (D-Calif.) and Sen. Majority Leader Harry Reid (D-Nev.) said their “breakthrough” still had to be “committed to paper,” a process that was expected to continue through the night.
>“We have something verbal,” said Rep. Rahm Emanuel (D-Ill.).
>Republican Whip Roy Blunt, the chief negotiator for House Republicans, said he was “looking forward to what we’re going to see on paper” and was optimistic that it would be something House Republicans could support.
>Said Treasury Secretary Henry Paulson: “We’ve been working very hard on this and we’ve made great progress toward a deal which will work and will be effective in the marketplace and effective for all Americans . . . .We’ve still got a lot to do to finalize it, but I think we’re there.”
>The plan would likely give Paulson a relatively free hand accessing the first $350 billion of the $700 billion he sought. It was not clear when the remaining $350 billion would become available, but Treasury apparently agreed that a future Congress could block its release though a joint resolution signed by the president.
>The agreement would also include much greater oversight than the Bush administration had initially proposed; an opportunity for the government to take an equity share in the companies it helps, either through warrants or options to buy stock; and a provision limiting the compensation paid to executives of those companies.
>To help win the support of House Republicans, the agreement also would likely include an option under which Paulson and future Treasury secretaries could choose to sell companies government-backed insurance to cover securities – thereby improving their value – rather than buy the assets as initially proposed.
We’ll update as soon as bill text is available.
UPDATE: Pelosi’s office has made available a somewhat vague summary of the draft proposal. Sill waiting for bill text…
UPDATE 2: From Rep. Roy Blunt, the chief negotiator for House Republican, a side-by-side comparison of the Paulson Plan, the Dodd and Frank plans, and the final compromise plan.
Still no bill text. Note this statement from Pelosi yesterday:
>Pelosi said she would like to see a deal struck by Saturday night that could be posted on the Internet for members and public to review.