What Is the $700 Billion Bailout Plan?
Sunday September 28, 2008
Congressman Barney Frank and Senator Chris Dodd (Credit: Chip_Somodevilla /Getty Images)
- Bailout installments of $250 billion each.
- An oversight committee that will review Treasury's purchase and sale of mortgages. The committee is comprised of Federal Reserve Chair , and the leaders of the SEC, the Federal Home Finance Agency and HUD.
- The ability for Treasury to negotiate a government equity stake in companies that receive bailout assistance,if it is the government's best interest.
- Limits on executive compensation of rescued firms. Specifically, companies will not be able to deduct the expense of executive compensation above $500,000.
- Government-sponsored insurance of mortgage-backed securities,and other assets, purchased before March 14, 2008.
- A requirement that the president propose legislation to recoup losses from the financial industry if any still exist after five years. (Source: CNNMoney, , September 28, 2008.)
Comments
I do not feel that my taxes should pay for any of the gambles undertaken by Wall Street big boys. If they want to use taxpayer money to bail out the bankers, then these executives should be retroactively taxed for 5 or so years back for 90% or so. If not, I do not see any point in paying my own taxes. I did not gamble and I do not need to be bailed out. Additionally, with an already record-sized budget deficit where is the money going to come from? The correct answer is, I think, just printing money which leads to inflation. Lets become Zimbabwe or Soviet Union 1991 or Weimar Germany…