Lawmakers: Wall Street rescue accord reached

[gateley]

Source: msnbc.com

BREAKING NEWS
NBC News and news services
updated 4 minutes ago

WASHINGTON - Congressional Republicans and Democrats reported agreement in principle Thursday on a bailout of the financial industry, and said they would present it to the Bush administration in hopes of a vote within days.

Emerging from a two-hour negotiating session, Sen. Chris Dodd, D-Conn., said, “We are very confident that we can act expeditiously.”

“I now expect that we will indeed have a plan that can pass the House, pass the Senate (and) be signed by the president,” said Sen. Bob Bennett, R-Utah.

The bipartisan consensus on the general direction of the legislation was reported just hours before President Bush was to host presidential contenders Barack Obama and John McCain and congressional leaders at the White House for discussions on how to clear obstacles to the unpopular rescue plan.

Read more: http://www.msnbc.msn.com/id/26884523/

---

More at link

[snappyturtle]

1. Hurry, hurry, cave, crash...I don't like this. nt

[torbird]

14. Haven't seen it yet

and you're already dissing it, V? Boo on you.

[snappyturtle]

49. Look, I'm just saying that this is just too fast and slick to have all the

loopholes covered. I think the congress critters are in one big hurry to get something done so they can go home. I do think the whole clean-up mess is a damned if we do and damned if we don't situation but I'd like the damaging part to be as small as possible. I would also like to know if the perpetrators will meet justice and no monetary gain. Can you tell how distrustful I am? I hope you're right and it is "Boo" on me....and btw, Welcome to DU! :hi:

[GreenArrow]

54. You don't have to see a turd

to know what one smells like.

[dixiegrrrrl]

92. My sentiments exactly

http://yarp2.motivatedphotos.com/autocdn/motivatedphotos/

[lib2DaBone]

98. This is pure Political Bullying by the Republicans.....

I'm so sick of it. The DEMS haven't learned to stand up after 8 years of this....OMG

[Muttocracy]

2. Sorry Bush and McBush - you're late. nt

[Coventina]

3. BOHICA! n/t

[SOS]

4. So now McCain can show up for the debate?

nt

[MadinMo]

29. Aw phooey.......

[barbtries]

5. what is the plan?

do we get to know the details?

[Hugin]

7. No, we don't rate it as peons. But, rest assured we're paying for it...

No details for us.

[Indenturedebtor]

10. Get back to work. Leisure is anti America

Stupid proles :grr:

[dnclpp]

93. Agreed

I know, it's like people have gotten too lazy these days. ha

[barbtries]

30. pretty much what i figured

was it hammered out in open session or all behind closed doors. i've been at work without cspan

[Hugin]

32. It was behind closed doors.

There's a link in GD about it. The exact quote in fact.

[barbtries]

50. thanks

i'm at work and finding it hard to keep up

[dweller]

11. details, shmetails ... get out there and get shopping!

who needs $ ?

obviously the CEO's, bankers, etc. do.
dp

[eowyn_of_rohan]

75. no. They know what's best for us, and we wouldn't understand it.

:sarcasm:

[crossroads]

85. We can't see it yet - but we will pay for it! nt

[jannyk]

6. BwaaaHaaa That'll take the 'Grand' out of McCain's 'Grandstand'.

:rofl: :rofl: :rofl:

[percussivemadness]

8. here`s an anology

We are in a car approaching a cliff. We are past the point of no return. Do we slam on the brakes and roll over the cliff (no bailout, deflationary depression within 7 days) or do we go fuck it, slam our foot on the gas and fly off the cliff (take bailout, postpone scenario a for about 10 years)?

Personally I prefer 2, because you never know whats going to happen whilst you are in the air.

[Hugin]

12. There's no way it'll delay it for 10 years.

No way!

[Carni]

68. My prediction would be about 8 weeks...

Isn't the AIG "bridge loan" of 85 billion due then?

Plus by then the election is over.

[northernlights]

13. where'd you come up with the 10 years?

I figured the delay effect would last 6 months if I was lucky. I like 10 years idea too. A LOT can happen in that time.

[percussivemadness]

21. the 10 year assessment

is based on a figure given by leading monetary historian Andy Gause , who is the only person I have heard actually put forward a good explanation of the current crisis. http://www.andygause.com/

However, the issue here is preventing a total collapse of the economy and financial system. Our objective should be to win in November and allow Obama the time to deal with the major issue, the Fed. If we don`t get to November, and this is not me being hysterical, but if the economy collapses into a deflationary depression, where the dollar is worth 30 cents, there will be riots and such like. For those of you who have forgotten, Public Law 109-364, or the "John Warner Defense Authorization Act of 2007" (H.R.5122) (2), which was signed by the commander in chief on October 17th, 2006, in a private Oval Office ceremony, allows the President to declare a "public emergency" and station troops anywhere in America and take control of state-based National Guard units without the consent of the governor or local authorities, in order to "suppress public disorder."

Personally, I have never expected Bush to walk away quietly, and I find it not so coincidental that this crisis with its likely consequences if the liquidity injection doesn`t happen somewhat coincidental, and whilst I am skeptical to conspiracy theories, I am a firm believer in coincidence theory http://www.djpauledge.com/blog.php?id=116 .

[barbtries]

34. on the other hand

they're just SAYING we're going over a cliff, and excuse me, but they've lied about every other goddam thing, i don't trust them.

but suppose it's true, and i was thinking about this earlier today, and what i thought was, i'd rather live through it with my children than live with knowing that i'd left them to go through such misery after i've passed on.

just thoughts.

[Virginia Dare]

44. THEY were going over the cliff for sure..

I just never fully bought into the idea that they HAD to take us with them.

[barbtries]

52. there ya go

but i guess they needed someone to break their fall.

[ContraBass Black]

38. Funny thing about that scenario

Gravity is the same, regardless of how fast you're going or where. In effect, horizontal motion is independent of vertical motion. Despite public misconception to the contrary, if they go over the same cliff at the same angles, the car whose driver is braking and the car whose driver is accelerating will hit the ground at the same time.

Perhaps that is also analogous to the financial situation.

[Mopar151]

78. Depends on whether you hit flat

Or on a downslope like a ski jumper

[ContraBass Black]

84. Indeed, the timing assumes a level landing ground,

But still, the only significant difference is the location of the impact, which matters little to the splattered occupants of the car.

[greyghost]

73. More like ten MONTHS! Yep, it's not going to take very long at

all until TOTAL meltdown.

[Uncle Joe]

80. How about we slam on the brakes

and come to a stop teetering on the edge of the cliff for a little while until a tow truck arrives instead of number 2 aka: the Thelma and Louise approach. They were in the air in slow motion and nothing happened until they hit the ground.

[Hugin]

9. Yay! We bought a bailout-to-nowhere! 4 more generations! 4 more generations!

That does it, I'm going over to the dark-side.

[torbird]

16. Jesus H. Overreaction

Let's not all drink Drain-o just yet, OK?

It took Bush 8 years to get us here.

Let's give Obama at least a few years to try and get us out.

Calm the hell down.

[Hugin]

19. Oh, the bailout apologists are arriving already?

:party:

[percussivemadness]

23. no the informed people have arrived

it`s the anti-bailout crowd who are enabling Bush.

[Hugin]

27. HAHAHAHA! I guess that's why McSame's poll numbers tanked on this bailout crap.

How so?

[snappyturtle]

70. How do you figure that? For the life of me I don't understand. Be kind

I'm sensitive today.

[percussivemadness]

22. Amen to that!!!!!

[dnclpp]

94. Agreed

I'm right there with you, does the Sith have any outfits for ladies? :P

[Tyler Generation]

15. And now we feed McCain to Obama at the debates

Bwahahahahaha!

[lelgt60]

17. It has to be approved by Commissar Paulson, first

[dropkickpa]

18. Whatever, I'm still poor as fuck

[TechBear_Seattle]

20. Let me guess: "bipartisan consensus" means the Dems caved yet again?

For years, "bipartisan consensus" has meant that the Democrats have given the Republicans everything they wanted and more. I assume this occasion is no different.

[Individualist]

24. Correct,

and the DLC cheerleaders are loving it.

[Individualist]

25. dupe

[percussivemadness]

26. no, for once the Dems have actually done the right thing

nothing must be allowed to stop the election in November, I would rather pay 700 billion to elect Obama than nothing to keep Bush in power.

[crossroads]

88. Amen to that! nt

[tkmorris]

91. Excuse me?

Are you out of your fucking mind? We have to pay $700 billion dollars and that's just ducky with you because we'll get to have an election? That's the most inane reasoning for this I've heard to date.

[Hugin]

28. Yes, it's the same sort of consensus that yielded the Supreme Court from the 12th Century.

Very much the same.

In fact, the Senator who is leading this is from the same State that delivered Lieberman upon us.

[OhioChick]

47. Probably so. n/t

[radfringe]

31. calling it a "rescue" is putting lipstick on a pig... just saying n/t

[fulllib]

33. Without McCain!

Regardless of the details, at least McCain was not needed and can't credibly claim to have been an influence in it.

[question everything]

35. That was the point

As Pelosi told NPR yesterday, they were on the verge of reaching an agreement but McCain wanted to take credit for it.

[barbtries]

37. won't stop him

i hear tucker bounds has already said it couldn't happen without him. still laughing through my tears over that one.

[Sam Ervin jret]

36. What about the no oversight by the courts clause? Is that still in there?

If it is the whole thing is just a sell out. If it's taken out we at least have a chance.

There should be ownership, slow small packaged application of funds with oversight and a review period to be sure the bill is doing what it is meant to do, court review available, caps for salaries of CEOs, and open full funding of the FBI investigations into those that caused and those that profited from this disgrace.

There should be no objection to any of these conditions. Any objections to these minor requests signifies danger and the bill should be stopped.

[Virginia Dare]

42. The last I heard they were not going to get the courts clause..

they did get executive compensation limits and equity stakes.

[snappyturtle]

72. Without judicial review,huh? Any Congressional over-sight?

If we don't have those,then how would we ever know if compensation limits and equity stakes were upheld? Just sayin'...........

[Virginia Dare]

81. Good point, I hope to hell that's in there...n/t

[Wilber_Stool]

39. Just a little blurb from MSNBC

Pubs passing around an alternative plan. Naturally, no details.

[Virginia Dare]

40. Bush had to swallow a bitter pill..

executive compensation limits and the equity stake, but not nearly as bitter as the pill we're swallowing.

[mbperrin]

41. Well, gosh, then, here's looking forward to doubled up inflation, high

interest rates, and the concomitant slowdown that goes with either one!

Maybe the Chinese will let us use knee pads at least when we go to borrow the money....

[DogPoundPup]

43. House Speaker Nancy Pelosi on Bailout Plan

Fax Title: House Speaker Pelosi Sells Out, Don't Follow from http://marketoracle.co.uk/Article6463.html

Senator/Congressman

The Paulson Plan cannot possibly work, and secret deals behind back doors will not make it any better. Throwing money at any problem never works. All it will do is create other problems elsewhere.

If the Treasury buys $700 billion in toxic mortgages from banks, the government would be setting itself up to be the world's largest homeowner.

The US government will own every house that is foreclosed on as well as those where people simply decide to walk away.

* Exactly what will the Government do with those houses?
* What will the losses be?
* How much would it cost to prevent foreclosures?
* What about walk-aways?

Questions like these are why Treasury Secretary Paulson and Chairman Ben Bernanke want you to rush passage of this bill. Both want you to pass Paulson's bill before you have time to think.

Please stop and think about the ramifications of quickly passing this bill. If you do, you will quickly see that $700 billion is a mere down payment on problems down the road.

If you are thinking, you will not let this bill pass.

$700 billion could provide a lot of jobs. Bailing out Wall Street will not create a single job, not one. Instead it will cheapen the US dollar causing mortgage rates to rise.

Mortgage rates tied to the 10-year treasury are already up a half point since talk of this ill emerged. Further increases will come if the bill passes.

This bill is already increasing mortgage rates!

It's time to kill this bill and start all over with proposals that will not cost taxpayers a dime. Alternatives from a number of qualified citizens have been presented.

Just because others are willing to sell out to Wall Street in secret back room deals does not mean you have to follow.

I cannot and will not vote for any member of Congress who votes for this bill in its current form or anything remotely close to the current form.

Your Name
Your Phone Number

The phone-in is working. Congress is spooked. We are swamping them with emails and faxes. Bush gave that speech because he is spooked.

Congressional aids have told me they have never seen so many call in.

Check out the New York Times article Lawmakers' Constituents Make Their Bailout Views Loud and Clear . http://www.nytimes.com/2008/09/25/business/25voices.html?ref=business

[OhioChick]

46. This deserves a thread of it's own. n/t

[DogPoundPup]

53. Go for it...I'm too exhausted! Couldn't decide where to post it!

I'm doing battle at my local papers forum and the CONS are wearing me out :)

[kirby]

69. BUT, mortgage rates NEED to rise...

It was the artificially low rates caused by the Fed over the years that allowed the housing bubble. Cheap money to chase houses.

[Virginia Dare]

82. I bought my first home with a 13% interest rate...1989...n/t

[kirby]

86. I bought one in 1988 around 11%...

And that was the peak/end of a housing bubble then too (nothing like now).

[Virginia Dare]

97. Yep, I don't expect an overall recovery like we saw then..

hopefully there won't be any more housing bubbles.

[lib2DaBone]

45. NO NO NO and HELL NO

Here it comes again. The DEMS have caved in and got nothing in return. There should be no bailout.. no fucking cooperation... let the rotten crooked banks fail. I can't believe our CONgress.

[dnclpp]

95. Agreed

Seriously, you are totally right can't say much more than that.

[AllexxisF1]

48. The United States As We Know It Will Cease To Exist.

Enjoy these few days for the coming months will be the worst in our entire history.

[greyghost]

74. You are correct.

[Roland99]

51. Rescue deal would pay $700 bln in installments: report

Rescue deal would pay $700 bln in installments: report
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BBDD51BE0%2DCFE7%2D4B26%2DA8A3%2D535B88947C28%7D&siteid=mktw

WASHINGTON (MarketWatch) -- A bipartisan agreement reached on Capitol Hill Thursday afternoon would pay out a $700 billion proposed rescue package for the financial markets in installments, The Wall Street Journal reported. The Journal reported that $250 billion in bailout funds would be available immediately, citing people familiar with the matter. Earlier Thursday, lawmakers announced they reached a deal on the package after a meeting lasting more than two hours. Lawmakers said the deal includes effective oversight of the rescue plan and limits on executive compensation.

[GinaMaria]

55. small indication of what was changed

The article mentions the following

House Speaker Nancy Pelosi, D-Calif., said Bush’s agreement with Democrats on limiting pay for executives of bailed out financial institutions and giving taxpayers an equity stake in the companies cleared a significant hurdle.

It was not yet clear how lawmakers had resolved lingering differences over how to phase in the eye-popping cost — a measure demanded by Democrats and some Republicans who want stronger congressional control over the bailout — without spooking markets. A plan to let the government take an ownership stake in troubled companies as part of the rescue, rather than just buying bad debt, also was a topic of intense negotiation.

[maddezmom]

56. Bailout Deal Closer to Reality('Fundamental agreement' reached on bailout)

Source: WKBT.coom

Lawmakers say they're close to striking a deal on the massive $700 billion dollar bailout bill.

They've agreed on several key points -- but they're still working out their differences on a few others. Later Thursday, the talks move from Capitol Hill to the White House -- where President Bush will meet with leading lawmakers, and the candidates for president.

It will allow the government to buy sour assets - like bad mortgages - from financial institutions that are on shaky ground. The Bush administration hopes -- that will help those companies. And, get them to resume lending money.

Lawmakers have found common ground on some key points -- like limiting the salaries of executives whose companies will benefit from the bill.



Read more: http://www.wkbt.com/Global/story.asp?S=9073479

---

'Fundamental agreement' reached on bailout

Top congressional negotiators have announced that they have a "fundamental agreement" on a government bailout of the nation's financial system, granting extraordinary powers to the secretary of Treasury to purchase hundreds of billions in bad debt while attempting to stem foreclosures for homeowners struggling on Main Street.

~snip~

Banking Committee Chairman Christopher Dodd (D-Conn.) said, "We believe we are prepared to act expeditiously on a package ... and send a message to the markets."

But Dodd cautioned that this is still a "set of principles" and not completed legislative language. Quite often, the nitty-gritty details of bill language can slow the process. Still, Dodd and other key negotiators seemed more confident Thursday afternoon than they have at any other point in the week long bailout negotiations.

The bill could reach the president's desk in a few days, Dodd said.

House Republicans continue to warn that they haven't signed off on this deal, but the bailout ship may sail without them given the pace of legislative activity today.

more:http://www.politico.com/blogs/thecrypt/0908/Fundamental_agreement_reached_on_bailout.html

[fascisthunter]

57. you keep dealing with the devil and yet expect......?

either they are stupid assholes who worry only about perception or they are complicit enablers.

[mikita]

58. try complicit enablers......

they've been doing it for years....

[whistle]

59. If that is the case Congress needs an immediate enema

[eowyn_of_rohan]

60. Does all of Congress get to vote on this, or will it be decided behind closed doors

by a select few?

[eowyn_of_rohan]

61. question ansered in another thread

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3511136

looks like they all will vote. I hope they STRETCH it out.

[Name removed]

102. Deleted message

Message removed by moderator. Click here to review the message board rules.

[ixion]

62. It's not a "bailout" or a "rescue" it's robbery, pure and simple

:argh:

[GinaMaria]

64. Just like the headline Man Bites Dog

Banks Rob People

[GinaMaria]

63. Sickening.

I feel sick at the news about the Congress being close to a bailout plan for Bush, the boy who cried 'wolf'. That Congress would agree to saddle us and the next how ever many generations with this debt is distressing. They have not addressed fundemental questions for us. How was $700B arrived at? Who did the math? What does it include? What evidence do we have that bailouts work? So far all we have seen is that they don't work. Why not start with $50 billion and see if there is any improvement? Why not make a profit and not just take toxic debt? Wouldn't it be nice if the government could issue dividends to the citizens they expect to foot the bill for this? We should all share in the profits if we have to assume debt that is NOT ours. Please think this through. Do not hand over a blank check. Do not settle for maybe a little oversight. Think about the people you are burdening with this massive debt. Please act according to our interests and not the banking industry's interests.

[Sam Ervin jret]

65. They MUST take ownership, they MUST do it in stages, they MUST NOT give into Paulson on no oversight

by the courts, and they must make it all reviewable in three months.

There should be small gradual releases of funds to see how this works within the framework of the larger bill with the oversight and controls in place to be sure the taxpayers are taken care of in this plan and in future situations. The FBI probes into behavior that caused this mess or profited from this mess should be fully funded and given the full support of the legislative and executive branch. All books should be opened up so that forensic accountants can get to work unhindered.

The Republican Party should be made to denounce and reject "deregulation", "trickle down economic", and tax cuts as the be all and end all to grow the economy.(I admit this last one is a real long shot)

[rosesaylavee]

66. Looking forward to seeing actual wording.

Interested in whether or not they will phase in funding as needed, how Paulson or the Treasury Secy will be reviewed and whether there is anything to help homeowner facing foreclosures.

Would also like them to address the credit swap schemes and/or at least acknowledge them officially as being part of this problem.

[GinaMaria]

67. what do you make of this?

But there were fresh signs of trouble in the House Republican Caucus. A group of GOP lawmakers circulated an alternative designed to attract private capital back into the credit markets with less government intrusion.

Under the proposal, the government would provide insurance to companies that agree to buy frozen assets, rather than purchase them directly as envisioned under the administration’s plan. The firms would have to pay insurance premiums to the Treasury Department for the coverage.

“The taxpayers haven’t done anything wrong,” said Rep Eric Cantor, R-Va., adding that rather than require them to bear the cost of the bailout, the alternative “pretty much puts the burden on Wall Street over time.”

Rep. John A. Boehner, R-Ohio, the minority leader, was huddling with McCain on the rescue. Earlier, asked whether the GOP presidential nominee could corral restive Republicans to support the plan, Boehner said, “Who knows?”



Is there a third plan in the works? Is this McCains way to take on the Dems and Bush? Force his own plan to make him look like a leader. He is really playing politics with this crisis.

[DogPoundPup]

71. "He is really playing politics with this crisis." I totally agree! n/t

[maddezmom]

76. Mike Spence now on MSNBC say NO DEAL yet, but....

would not answer if there were enough R votes to block it.

[GinaMaria]

79. Is there a sense that the Rs will block this?

or try to replace all or some of it with their own language?

[Runcible Spoon]

77. OH WHAT THE FUCK!

I'd like to "thank" Nancy and the rest of the fucking spineless DLC bluedogs and other coward Dems for caving in on this shit and letting the biggest heist in the history of the world occur right under our FUCKING NOSES!

[dnclpp]

96. Totally Right

While I might not choose the same language :P I completely agree

[EndElectoral]

83. Is Glass-Steagall reinstituted in this bill?

[crossroads]

87. What we have learned from history is that we have not learned from history! nt

[Neshanic]

89. The latest is there is NO agreement.

[GinaMaria]

90. Who or what has stopped it? n/t

[Name removed]

99. Deleted message

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[Name removed]

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[Name removed]

100. Deleted message

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