Here we go!

[InkAddict]

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

Read the 106-page bill (Heading)

[ShortnFiery]

1. CNN is working their ittle corporate hearts out to sell this "SHIT SANDWICH" to the American people.

Really, Main Street America, this "shit sandwich" is delicious. Please don't the wealthy land hard or you peons will SUFFER.

BASTARD! Don't bail out Wall Street! :thumbsdown:

[BlooInBloo]

2. One of the few useful things Pelosi has done....

http://www.dailykos.com/storyonly/2008/9/28/9301/36696/334/612935

"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."

[Zhade]

22. ALL pre-vote legislation should be posted online for citizen input!

This should be the law!

[Subdivisions]

3. Kick & Recommend all read this. Reading it now myself. n/t

[Jeanette in FL]

4. K & R'd

Thanks I just came on to see if it was posted.

106 pages, how is John McCain going to get through this? He had a hard enough time with the three page outline from Paulson.

[Cleita]

5. I read it and understood some of it.

I hope I read right that they are limiting golden parachutes to half a million dollars. Maybe that's more fiscally conservative than what has been going on, yet for someone like me who probably has barely made that amount of money in a lifetime, it's a hard figure to swallow. I didn't see anywhere in this document any language that says that the majority of the tax revenue for this bailout will come out of the top 5% of the wealthy here in the USA. I don't think the working poor and middle class should be responsible for this.

[girl gone mad]

23. No, you read wrong.

The compensation over 500K will be taxed at 20%. There will likely be tax loopholes and probably even lawsuits that will keep this from ever being implemented. Executives at that level often have their taxes payed by the company, anyhow.

[dkofos]

6. I get Document locked Enter Password WTF??

[Captiosus]

7. K&R, reading now, taking notes, probably comment later n/t

[lonestarnot]

8. Thanks! Wonder if I can print it on toilet paper?

[tbyg52]

9. 106 pages in just these few days?

To me, that means there's a 99% chance it's messed up. Hope I'm wrong.

[Cleita]

11. A lot of it is legalese, defining terms and such. n/t

[lostnotforgotten]

10. Link Page Won't Load

eom

[Pale Blue Dot]

12. I'm already deeply concerned about this passage:

(e) PREVENTING UNJUST ENRICHMENT.—In making purchases under the authority of this Act, the Secretary shall take such steps as may be necessary to prevent unjust enrichment of financial institutions participating in a program established under this section, including by preventing the resale of a troubled asset to the Secretary at a higher price than what the seller paid to purchase the asset. This subsection does not apply to troubled assets acquired in a merger or acquisition, or a purchase of assets from a financial institution in conservatorship or receivership, or that has initiated bankruptcy proceedings under title 11, United States Code.
SEC. 102. INSURANCE OF TROUBLED ASSETS

This passage says that the Fed can't purchase the assets at a price MORE than what the institutions paid for them. This makes sense - of course the financial institutions shouldn't profit from the sale of these assets. The problem in that these assets are currently worth SIGNIFICANTLY less than the financial institutions paid for them. The bill makes it legal for the Fed to buy the assets AT THE PRICE THE INSTITUTIONS PAID FOR THEM. That would be a terrible deal for the American people.

I haven't read the whole bill yet, so it's not out of the question that this is addressed later in it.

[Captiosus]

14. In regards to that passage, I'm equally concerned about the

Merger, acquisition and bankruptcy loophole in the second half of the paragraph.

[ContinentalOp]

21. No kidding!

Hasn't most of the bad debt in question been shifted around a thousand times by now?

[Captiosus]

13. IMO, Sec 115 (a)(1-3) (pdf pages 50-51) need a lot of revision.

Here they are, copy and pasted:

9 SEC. 115. GRADUATED AUTHORIZATION TO PURCHASE.
10 (a) AUTHORITY.—The authority of the Secretary to
11 purchase troubled assets under this Act shall be limited
12 as follows:
13 (1) Effective upon the date of enactment of this
14 Act, such authority shall be limited to
15 $250,000,000,000 outstanding at any one time.
16 (2) If at any time, the President submits to the
17 Congress a written certification that the Secretary is
18 exercising the authority under this paragraph, effec
19 tive upon such submission, such authority shall be
20 limited to $350,000,000,000 outstanding at any one
21 time.
22 (3) If at any time after obligations of amounts
23 described in paragraphs (1) and (2) have been made,
24 the President transmits to the Congress a written
25 report detailing the plan of the Secretary to exercise

---Page 51---

1 the authority under this paragraph, unless there is
2 enacted, within 15 calendar days of such submission,
3 a joint resolution described in subsection (c), effec
4 tive upon the expiration of such 15-day period, such
5 authority shall be limited to $700,000,000,000 out
6 standing at any one time.

So, let me see if I have this language right.
First we're only going to give you 250 billion (a)(1). If the President sends us a letter saying you're doing your job the way we asked and wants more money, we'll give you another 100 billion, so you'll have 350 billion out at one time (a)(2). If the President sends us another letter, a little more detailed but still saying you're doing the work as we want you to, and we haven't set an expiration date beforehand, we'll give you up to another 350 billion so you'll have a cap of 700 billion out at one time (a)(3).

I don't trust this language. It's still almost a free pass, just in increments. Yes it calls for more oversight, but look who is making the determination: the PRESIDENT. Paulson reports to Congress, per the oversight in the bill, and gives his documents showing how they are determining who to bail out and how they are disbursing funds. Bush turns around and says, "See, Paulson is doing what you ask, please give us more money." Paulson continues to play ball with the oversight, submits a plan to Bush, who submits the plan to Congress and asks for the rest of the 350 billion.

This needs to be tied closer to more oversight, and the President shouldn't be the only person making the determination of whether Paulson is using his authority the way Congress spelled out. It should be a request from the President with the determination coming from Congressional committees.

[girl gone mad]

15. So much for transparency:

SEC. 114. MARKET TRANSPARENCY.
...

22 (b) DISCLOSURE.—For each type of financial institu23
tions that is authorized to use the program established
24 under this Act, the Secretary shall determine whether the
25 public disclosure required for such financial institutions

1 with respect to off-balance sheet transactions, derivatives
2 instruments, contingent liabilities, and similar sources of
3 potential exposure is adequate to provide to the public suf
4 ficient information as to the true financial position of the
5 institutions. If such disclosure is not adequate for that
6 purpose, the Secretary shall make recommendations for
7 additional disclosure requirements to the relevant regu
8 lators.

[Captiosus]

16. So much for limiting the time frame, too...

18 SEC. 120. TERMINATION OF AUTHORITY.
19 (a) TERMINATION.—The authorities provided under
20 sections 101(a) and 102 shall terminate on December
21 31, 2009.
22 (b) EXTENSION UPON CERTIFICATION.—The Sec
23 retary, upon submission of a written certification to Con
24 gress, may extend the authority provided under this Act
25 to expire not later than 2 years from the date of enact

---

1 ment of this Act. Such certification shall include a jus
2 tification of why the extension is necessary to assist Amer
3 ican families and stabilize financial markets, as well as
4 the expected cost to the taxpayers for such an extension.

Sooooooooo one year and 3 months minimum to two years maximum.

The more I read this bill the more I think it stinks just as bad as the first one.
The only upsides, so far, is the oversight clauses and the golden parachute limitations.
I still have about 35 pages to read though.

[Neshanic]

18. That will be changed to 5 years before approval.

[Captiosus]

17. Last post on this, I promise

I really dislike this bill.

And Pelosi was right. There's one very small section regarding homeowners but it doesn't offer any substantial relief whatsoever. This bill gives plenty of oversight - I counted at least 4 different levels of Congressional oversight on multiple aspects of the bailout - but still hands out cash pretty freely and doesn't do shit for anyone beyond financial institutions.

If this went up for a vote and I was in the House, I'd vote no on it.
Twice, if I could.

[girl gone mad]

19. I've just finished reading it in its entirety.

My initial impression is that it's a terrible bill.

No transparency.

The only limit on executive compensation is that the corporation can't take a tax deduction on any amount of money paid to an executive over $500k.

Treasury has only the "option" to take an equity stake under "certain circumstances."

Democrats rolled over, big time.

[girl gone mad]

20. This really makes me ill:

TITLE 12 > CHAPTER 3 > SUBCHAPTER XIV > § 461
Amendment of Subsections (b) and (c)
Pub. L. 109–351, title II, §§ 201–203, Oct. 13, 2006, §§ 201–203, 120 Stat. 1968, provided that, effective Oct. 1, 2011, this section is amended— (1) in subsection (b)(2)(A), by striking “the ratio of 3 per centum” and inserting “a ratio of not greater than 3 percent (and which may be zero)” in clause (i) and by striking “and not less than 8 per centum,” and inserting “(and which may be zero),” in clause (ii); (2) in subsection (b)

This will allow banks to hold zero reserves if the Fed says it's okay.

Also, the neew debt limit is $11,315,000,000,000.

That's $38,000 per capita.

[ShortnFiery]

24. The dems who vote for this should be unseated in their next Democratic Primary.

Let's tell them that - OFTEN before the final vote on Wednesday in the Senate?