Read the 106-page bill

[InkAddict]

Source: CNN/US Congress

To provide authority for the Federal Government to purchase certain types
of troubled assets for the purposes of providing stability to and preventing
disruption in the economy and financial system and protecting
taxpayers, and for other purposes......

Read more: http://money.cnn.com/2008/09/28/news/pdf/index.htm

---

Here we go!

[rosesaylavee]

1. ARRGH

The pdf file is damaged and can't be viewed. Again.

[knowbody0]

2. Try again, I'm reading it.

I had to accept terms of Adobe b.s. b4 it allowed.

[rosesaylavee]

15. Just tried again. It didn't let me open.

My Reader is still version 6.0. Maybe that's the problem.

[OneBlueSky]

98. obfuscate: to make obscure or unclear: to obfuscate a problem with extraneous information. . .n/t

.

[rosesaylavee]

99. ????

Okeee. What do you mean?

[OneBlueSky]

102. a hundred pages of text designed to discourage anyone from reading . . .

and understanding what's in the bill . . . now that's obfuscation . . .

[WorseBeforeBetter]

3. I think this should be bumped immediately to the home page.

Thanks for posting! Bracing for it...

Sec. 111. Executive compensation and corporate governance.

[Nevernose]

8. Did they define "golden parachute" anwhere?

Otherwise that's a pretty vague loophole. Is "golden parachute" at least in Black's?

[WorseBeforeBetter]

20. Page 32 -- sorry for the sloppy cut and paste (not in the mood to fix it!)

6 ø(c) GOLDEN PARACHUTE DEFINED.—In this sec7
tion, the term ‘‘golden parachute’’ means any payment (or
8 any agreement to make any payment) in the nature of
9 compensation by any financial institution for the benefit
10 of an individual pursuant to an obligation of the financial
11 institution that—¿
12 ø(1) is contingent on the termination of the af13
filiation of such individual with the financial institu14
tion; and¿
15 ø(2) is received on or after the date on which—
16 ¿
17 ø(A) the financial institution becomes in18
solvent;¿
19 ø(B) any conservator or receiver is ap20
pointed for the financial institution;¿
21 ø(C) the financial institution files for
22 bankruptcy protection under title 11, United
23 States Code; or¿
24 ø(D) the financial institution is in a trou25
bled condition.¿

Also referenced on pps. 31, 39 and 43, but I only did a quickie search.

[IndependentDem]

4. "prohibition on the financial institution making any golden parachute payment"

haven't finished the entire thing yet... jumped to SEC. 111

[Eric J in MN]

44. Only applies when Henry Paulson buys a lot of shares in...

...the corporation and for as long as he holds those shares.

If he gives billions to a corporation for their trash, also buys shares, and then he sells the shares, then they can get golden parachutes (even if all those things took place within a year.)

"a prohibition on the financial institution making any golden parachute payment to
its senior executive officers during the period
that the Secretary holds an equity position in
the financial institution."

[wordpix]

81. Paulson doesn't need it--- already got hundred$ of million$ leaving Goldman, closely tied to AIG,

which got $85 billion in mid-Sept. from Paulson without consent of Congress.

http://online.wsj.com/article/SB122156561931242905.html

Follow the money, which is stinking to high heaven as we learn more BushCo bushit.

[wordpix]

93. read today's NYT article about Paulson/AIG ties

http://www.nytimes.com/2008/09/28/business/28melt.html?_r=1&oref=slogin

[dkf]

5. Is this the same thing that used to be 3 pages?

[tbyg52]

6. 106 pages in just these few days?

That's all I need to know to be 99% certain that it's a mess. Hope I'm wrong.

[mcollier]

10. There must be hundreds of staffers working on this

legislation, don't underestimate the ability for smart people to get things done when they put their minds to do it.

[LiberalFighter]

13. Yep!! McCain is going to read it all by himself.

[RoccoR5955]

32. Grandpa will be done reading it in 2012 n/t

[WCGreen]

48. Where's my spectacles, where's my spectacles....

John they're up on your head.

Dagnabbit you C**t, I spent 5 years as a POW.

[tbyg52]

18. I hope so. And hope everyone who votes for it actually reads the whole thing. nt

[RUMMYisFROSTED]

54. It's not the work product(staffers).

It's the editors(Congress).

Hundreds of written pieces still have to be dissolved.

[kmdemqueen]

36. I wish

I wish more bills that we think are important could move faster. Kh

[bulloney]

43. They always say the devil's in the details. When you go from 3 to 106 pages, there's a lot of devil

added to the agreement.

[texastoast]

51. What are we going to do if it goes to vote tomorrow?

We have to stop that.

[FarCenter]

11. Investment bankers start out with a "term sheet"

Which sets out the basics of the deal as succinctly as possible.

Then during the negotiations, the details and the legal boilerplate get inserted.

About 1/2 of this is standard boilerplate about setting up various panels, boards, etc, and giving them power to do business.

[FarCenter]

12. Section 132 is worth reading

It gives the SEC the power to suspend "mark to market" pricing of assets on the bank's balance sheets.

If they can get this done by the end of the quarter, September 30 - Tuesday, it will help a great deal.

It will keep the hedge funds from manipulating the prices of CDS downwards in order to depreciate the assets carried on the banks' books and make the banks look insolvent.

[LiberalFighter]

14. Maybe they can backtrack the date it goes into effect so assets aren't screwed up.

[FarCenter]

17. Companies might have to delay their quarterly reports

For example, if this doesn't get done, Wachovia might have to pull the trigger on the merger with ...

Charlotte, NC would lose a bank headquarters.

[dkf]

22. You think this bill will save WB?

[FarCenter]

29. I think that they are waiting to see what happens with the bill

But not having to write down the Golden West "pick a pay" ARMs would certainly help their balance sheet.

If no one will buy them in a market trasaction they have to mark them to zero, even though Wachovia might ultimately recover a significant amount through mortgage workouts and foreclosures.

[sfwriter]

19. Statement 157 background RE section 132

http://www.metrocorpcounsel.com/current.php?artType=view&artMonth=March&artYear=2008&EntryNo=8012

SFAS 157, "Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."

Basically section 132 lets the SEC suspend this rule when transferring these assets. I'm betting this will force the government to pay more for the assets.

[FarCenter]

23. Not necessarily, since the govt will buy thru auctions

[LonelyLRLiberal]

35. What's the difference between "fair value" and "fair market value"?

My guess is that leaving out "market" lets them pay anything Paulsen damn well pleases.

[amandabeech]

64. That's exactly it.

Buying this toxic stuff at current fair market value doesn't help the banks.

If anything is going to happen, the junk has to be purchased at a much higher price.

And there is no guarantee that anything will really help long term. This may just be a delaying action.

Krugman has been very concerned about exactly the same thing that you point out.

[tccturtle]

77. For those not as financial market definition savvy as most, this link helps...

http://www.fasb.org/st/summary/stsum157.shtml

[LonelyLRLiberal]

34. They were saying the vote might be Wednesday due to Jewish holidays.

I guess they don't work on Jewish holidays?

[Misskittycat]

69. There are many Jewish Senators and Reps.

Rosh Hashanah, starting Monday night, along with Yom Kippur (10 days later) are the most important Jewish holidays of the year. The Jewish New Year is not like the secular New Year on December 31st; it's not a partying, drinking, getting wild-type holiday. It's a going-to-synagogue for long hours, examining your life, and getting-ready-to-atone-for-all-your-sins-type

[LonelyLRLiberal]

70. You can tell I don't know much about this - but then I am non-religious. nt

[Misskittycat]

79. That's ok. Glad to provide some background.

[amandabeech]

60. That sounds very helpful.

For community banks, however, it will not be enough.

Those banks had statutory capital consisting in part of preferred in Fannie and Freddie. When the feds took over, the feds bought senior preferred, thus wiping out the capital of these small banks that are incredibly important to small business.

Frankly, I think that those banks should be able to exchange that now worthless preferred for treasuries taking a relatively small haircut. It would do a lot for lots of mainstreets, and the problem was purely the result of a total miscalculation by Bernanke.

[wordpix]

84. well, if you don't count the House repukes' one-page version

[uppityperson]

7. k&r and hoping for a shorter summary minus legalize language. nt

[LonelyLRLiberal]

37. The legalese is what can bite you in the butt. nt

[Coexist]

73. crib notes version for you!

http://www.house.gov/apps/list/press/financialsvcs_dem/summary_of_the_eesa2.pdf

SUMMARY OF THE “EMERGENCY ECONOMIC STABILIZATION ACT OF 2008”

I. Stabilizing the Economy
The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion
to the Secretary of the Treasury to buy mortgages and other assets that are clogging the
balance sheets of financial institutions and making it difficult for working families, small
businesses, and other companies to access credit, which is vital to a strong and stable
economy. EESA also establishes a program that would allow companies to insure their
troubled assets.

II. Homeownership Preservation
EESA requires the Treasury to modify troubled loans – many the result of predatory
lending practices – wherever possible to help American families keep their homes. It
also directs other federal agencies to modify loans that they own or control. Finally, it
improves the HOPE for Homeowners program by expanding eligibility and increasing
the tools available to the Department of Housing and Urban Development to help more
families keep their homes.

III. Taxpayer Protection
Taxpayers should not be expected to pay for Wall Street’s mistakes. The legislation
requires companies that sell some of their bad assets to the government to provide
warrants so that taxpayers will benefit from any future growth these companies may
experience as a result of participation in this program. The legislation also requires the
President to submit legislation that would cover any losses to taxpayers resulting from
this program from financial institutions.

IV. No Windfalls for Executives
Executives who made bad decisions should not be allowed to dump their bad assets on
the government, and then walk away with millions of dollars in bonuses. In order to
participate in this program, companies will lose certain tax benefits and, in some cases,
must limit executive pay. In addition, the bill limits “golden parachutes” and requires
that unearned bonuses be returned.

V. Strong Oversight
Rather than giving the Treasury all the funds at once, the legislation gives the Treasury
$250 billion immediately, then requires the President to certify that additional funds are
needed ($100 billion, then $350 billion subject to Congressional disapproval). The
Treasury must report on the use of the funds and the progress in addressing the crisis.
EESA also establishes an Oversight Board so that the Treasury cannot act in an arbitrary
manner. It also establishes a special inspector general to protect against waste, fraud and
abuse

[uppityperson]

85. Thank you. That is what I am looking for.

[wordpix]

86. thanks! very helpful. Paul$on must be breathing a sigh of relief since he got his millions in

diamond parachute funds---in the "hundreds of millions" after leaving Goldman Sachs.

[debbierlus]

9. Yes, let's kick it to the home page and could you add a suggetion in your original post

For everyone to blog about it here - observations, concerns, outrages...

It will give us a nice neat place to discuss this without a zillion threads.

:kick:

[sfwriter]

16. A $700 billion revolving door...

PAge 51

"such authority shall be limited to $700,000,000,000 out-standing at any one time."

So this is an ongoing $700 billion bailout!

[LonelyLRLiberal]

39. Insane!!!! I can't go for this.

[chimpymustgo]

58. "700,000,000,000 OUTSTANDING AT ANY ONE TIME???!!!! We are so screwn.

[sfwriter]

21. Sec. 101 C 3 Paulsen can designate wall street firms to administer this act...

The Fox isn't just guarding the hen house, we've given it the deed with this thing... See Sec. 101 C 3. Paulson can hand administration of this to a Wall Street firm. They don't have to tell us how they are valuing the assets and they can suspend standard accounting rules for valuation. It is also NOT $700 billion, it is $700 billion at ANY ONE TIME meaning we have a revolving door for dumping of assets. Get an aggressive Wall Street firm to sell them at fire sale prices, clear them off the books and repeat.

Basically we can sell them for what they go for now but pay what they went for then. Once sold on, a loss is recorded and that amount is free to be bought again.

[LonelyLRLiberal]

38. "It is also NOT $700 billion, it is $700 billion at ANY ONE TIME " ??

OMG!

[321Outright]

57. that was in paulsens original plan

A few others and I raised this point when the 1st plan, the 3page one, came out. And i still havent heard once on TV anyone talk about it being potentially a lot more than 700bil. when all is said and done- because of the "at ony one time" bit.

[wordpix]

87. Why are the Dems in bed with BushCo on this one?

:shrug:

[dkf]

24. From Krugman: House staff tells me that there are significant changes from this draft.

http://krugman.blogs.nytimes.com/2008/09/28/tarp-draft/

[FarCenter]

31. Yes, this is clearly a draft

I particularly liked:

"to suspend, by rule, regulation, or oder, the application of Statement Number 157 of the Financial Accounting Standards
Board for any issuer"

[Hardrada]

55. They have German staffers too?

[lonestarnot]

41. I'm not bothering with this one then.

[texastoast]

49. It is a 'discussion draft'

So what about the Monday vote? Rove is trying to get this pushed through without any 'discussion.' This is so bad.

[wordpix]

88. Let's discuss this "at any one time" clause, then, since the "leaders" are starting to listen to us

lately. :evilgrin:

[kmdemqueen]

25. I read it on cnn

They better e right on this. Because we will live this thing for the reat of our lives and maybe our childrens.

[texastoast]

53. They are NEVER right

When trying to push shit through like this. CALL YOUR REP TOMORROW AND 'JUST SAY NO.' Get some talking points about 1, what is the CEO compensation provisions; 2, EXACTLY how much oversight does this include; 3, how much of that is BIPARTISAN oversight; 4, how is the taxpayer protected from CEO theft. Just those 4 points should prevent a vote of yes.

If we don't call, we can't complain about the screwing.

[humbled_opinion]

26. Are People Completely INSANE?

Bush rushed us to war with the same emotional rantings that he is rushing this appropriation past CONGRESS.

I am a U.S. Taxpayer and I say ENOUGH. Let the Capitalists systems fail if that is what is meant to happen how can tossing good money after bad ever be the responsible thing to do?

This Bill does only one thing it ties the hands of the next president to a failed economic policy.

I so hope Obama does not sign on to this because once he is President if anything happens the idiots Repukes are going to pin this around his neck.

[vanboggie]

28. Exactly

Just another goal of the neo cons completed. The ignorance so many American citizens when they buy into this B.S. is mind blowing. Fool me once..

[nolabels]

42. Anybody that votes yes for this piece of crap is

Like it's just expanded version of the three page version. They should just simplify the whole thing.

We, the United States Congress Transfer all tangible assets owned by the United States and it's people to the Secretary of Treasury of said United States

[humbled_opinion]

50. LOL .

Funny ...No

Your point is incredibly sad and true. America is dying.

[ohio2007]

74. They should allow these institutions to fail

otherwise, why call it capitalism if the govt is subsidizing it into a body cast and prolong the failure ?

It will be interesting who won't sign the bill

I can think of only one,
Dennis Kucinich

Anybody think of a reason he will lock step with the wall street gangs and pass it ?

[wordpix]

89. ha! Paul$on allow his Goldman Sachs parachute tied to AIG cords to fail?

This IS about Paulson and his diamond hundreds of millions of dollars worth of parachute and how Goldman is tied to AIG big time, AIG just receiving $85 billion in loan bailouts this month without any Congressional legislation.

My question: how can Congress sit back as Paulson/BushCo gives $85 billion to AIG and even more billions to other companies without Congressional approval?

[ohio2007]

101. guess what ? the bill failed

"I did not come to congress to sit on the board of directors of Goldman Sachs"

- Dennis Kucinich 9/29/08

Let the market correct itself

[pinto]

27. kick

:kick:

[Peterbrownie]

30. 106 pages? Ouch

Can't promise I'll read the whole book today, hehe.

[kmdemqueen]

33. Well

I don't about you guys. Bet it's just another risky venture on our part. Why do have to always save the rich.It's not like they are always trying to save us. This could mark us for the rest of our lives and possibly our children's and beyond. what I can I say.

[texastoast]

40. You and everyone here can say HELL FUCKING NO

Call your reps, and say it. Loud and proud.

Either that or enjoy being screwed without any lubricant.



:mad:

[mr1956]

52. Section 120: Termination of Authority

It sounds like this measure terminates on 31 Dec 2009 unless a there is a proven need for a 2 year extension.

[Joanne98]

45. Northern Mariana Islands is in there.

[wordpix]

90. OMFG, what does it say?

[Eric J in MN]

46. The limits on executive compensation only apply to some of the corporations...

..which participate, and ban rewarding excessively risky behavior.

There is NOT a maximum salary in the bill.

[texastoast]

47. Thank you for posting this

Another backroom deal.

Has anyone read how it affects this following load of crap? I read in the NY Times article that it affects the pay of 'some' CEOs. Let me know if you come across this differentiating language. We need talking points for EARLY in the morning to call the reps' offices.

THIS IS FUCKING BAD!!!!



http://www.businessweek.com/ap/financialnews/D934QLJO0.htm
New WaMu CEO to get at least $12.65M pay


Washington Mutual Inc.'s new CEO, Alan Fishman, will be eligible for at least $12.65 million or more in salary and bonuses next year, the company said Thursday in a securities filing.

Fishman, who replaced Kerry Killinger as CEO on Monday, also received a $7.5 million signing bonus for joining the company, according to a regulatory filing made with the Securities and Exchange Commission.

Under his employment agreement, Fishman will receive a base salary of $1 million, a target bonus of up to $3.65 million and a long-term incentive award starting in 2009 of at least $8 million.

[barbtries]

56. nobody's worth that much goddamn money

i make less than $50,000 a year and i'm supposed to bail these fucks OUT? no, no, no. there's 240 hours in a day. nobody is worth that much.

[jmowreader]

63. Considering what he's being asked to do, it's not that far-fetched

A million a month is a shitload of money, there's no questioning that.

But I look at the absolute disaster they brought him into, consider that if he doesn't start turning things around immediately they're going to can him in three days, and think "that's about right." I know I wouldn't do it for less.

[Zhade]

78. They didn't bring him in to fix anything. They brought their buddy in so he could CASH in.

Total fucking scam.

[texastoast]

80. He probably CAME from a million a month

That's the whole goddam problem. NOBODY should make that much money when they stand on the backs of people who work for minimum wage or slightly better.

I'd damned sure do it for less and probably do a better job. These fucks just play musical chairs with noncompete agreements. The OUTGOING CEO is being rewarded for fucking up.

Thanks for the corporatist take on things.

[BearSquirrel2]

59. Democrats have no balls ...

They should pass the plan they believe will work and send it to the president. If he vetoes it, it's on the Republicans heads.

[harun]

75. Exactly. On McLaughlin the RW shills were already trying to dump

this as a "Democrat" plan where the House Repub's were the ones against it. The Dem's need to say "get all the pukes on board or we vote it down". Better yet is your idea of sending a full Dem plan to the President. He vetoes it then the Dem's can say "hey, we tried". By the time they sort it out we can get B*sh out of office and get real reform through. The Repub's successfully made the "surge" funding a Dem problem and this a Dem problem. Neither of them is a Dem problem.

[truedelphi]

82. Most Democratic congress people are merely gatekeepers

Any time they want my vote it is all _ "Make sure we have a Demcoratic majority so we can stand up to Bush and get what is needed for the middle class."

Then after the Dems are in, their lukewarm actions may be put into terms and expressions looking like they care, but they DON'T!!

Ah, life in a Banana republic. Where a cool million can buy you a Congressional leader. And a few million more can buy you a senator.

I always did wonder where the missing 9 billion from the Iraqi Reconstruction funding went. Now I know.

[Lovable Scamp]

61. I think this is defining moment

In where The Democratic party can embrace it, make it they're own and be known as the party that saved the country... maybe the global economy, from the edge of the precipice, leaning over and staring into the abyss. I was skeptical for about the first 4 days of this crisis and even tho it has to be done quickly, I have confidence in extremely smart people, and people who really do put they're country first, to make the adjustments and refine this legislation after its passed. Maybe I'm a little over optimistic, but it has the potential, like Chrysler and the Mexican economy government interventions to stabilize and profit for the US taxpayer.

[amandabeech]

62. The Mexican bailout started the sucking sound that Perot was so fond of.

Lots of veggie farmers lost big time, too, because the flood of produce started when the peso collapsed.

A lot of the benefit depends on one's perspective.

[Lovable Scamp]

65. That may be part

but they did pay the loan back 3 years ahead of the maturity date and the US Tax payer netted 600 million in profit

[amandabeech]

67. Making a profit for the treasury does not take into account the other

economic problems that the bailout caused, as I have mentioned.

Additionally, the bailout was just another moral hazard ignored and swept under the rug.

The more you bail, the bigger risks the players in this thing will take, because they increasingly think that if they get into trouble, Uncle Sam will march to the Western Union office and wire them some money.

Instead of establishing the relationship between risk and reward in the minds of the investor class, it demolishes it.

There is no way that capitalism can work in a riskless investment world. And privatizing that reward and socializing that risk is the worst of all possible worlds, and, unfortunately, it is the one that we have been inhabiting for at least 30 years.

[texastoast]

83. Chrysler

All my life I've known better than to buy any Chrysler product. If the economy is going to be compared to that, we are completely doomed.

There are very few extremely smart people who are politicians on either side of the aisle. Most extremely smart people will have nothing to do with politics. Now if we could get some Nobel scholars writing the legislation, things might have a chance.

We are about to get screwed weapons-of-mass-destruction style.

[Lovable Scamp]

97. I believe the point

of the whole plan is to have non-politicians... the really smart people administer this plan.

[texastoast]

100. I believe it had way to much White House access

And we know what happens when Bush says, "Trust me on this."

[lelgt60]

66. I love representative gov't because I don't have to read 106 page bills...

If I'm going to have to do their job, screw it. Lets have direct vote democracy.

This is so outrageous it's just....AAAAggggggg!!!!!

[LatteLibertine]

68. The new WaMu Ceo

worked 17 days then got paid 20mil on his way out the door. I think I'm in the wrong line of work.

[ohio2007]

71. So they pass a bill calling for ownership of failing institutions.

maybe they should nationalize the ones operating in the black just to balance the books to earn "share holder" approval ?

Is that the direction ?

I didn't authorize my congressman to vote for these bailouts btw.

Some stockholders will speak out at the nov 4th meeting imo ;)

so they better
"Show me the pork" in the next 30 days

[Best_man23]

72. Keep getting: The file is damaged and could not be repaired

Does this mean "The Economy is damaged and could not be repaired"?

[wordpix]

91. no, "the government is falling and cannot be repaired"

[sasori]

76. What the hell? can't they make it a LITTLE less complicated?

like maybe 26 pages instead of one hundred and six? ARRGH! so annoying.:rant: :rant: :rant:

[wordpix]

92. are you kidding? Then the PEOPLE would be able to/want to read it!

This way, they can pull an "Iraq War" on us and pass it through as they finish off our government once and for all and PNAC is a success.

[newtothegame]

94. Thank n/t

[SahaleArm]

95. Section 132 will allow Paulson to overpay for assets

Mark to fantasy will allow Paulson to pay dollar for dollar on an asset worth 30-50 cents on the dollar. Nice if your trying unload a sh*t sandwich on the taxpayer.

[Land Shark]

96. Sec. 119 stays on proven constitutional violations by Secretary, analysis here

at this thread
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4116021