Office of Speaker Nancy Pelosi — Sept. 28, 2008
REINVEST, REIMBURSE, REFORM
IMPROVING THE FINANCIAL RESCUE LEGISLATION
Significant bipartisan work has built consensus around dramatic improvements to the original Bush-Paulson plan to stabilize American financial markets — including cutting in half the Administration’s initial request for $700 billion and requiring Congressional review for any future commitment of taxpayers’ funds. If the government loses money, the financial industry will pay back the taxpayers.
3 Phases of a Financial Rescue with Strong Taxpayer Protections
Reinvest in the troubled financial markets … to stabilize our economy and insulate Main Street from Wall Street
Reimburse the taxpayer … through ownership of shares and appreciation in the value of purchased assets
Reform business-as-usual on Wall Street … strong Congressional oversight and no golden parachutes
CRITICAL IMPROVEMENTS TO THE RESCUE PLAN
Democrats have insisted from day one on substantial changes to make the Bush-Paulson plan acceptable — protecting American taxpayers and Main Street — and these elements will be included in the legislation
Protection for taxpayers, ensuring THEY share IN ANY profits
Cuts the payment of $700 billion in half and conditions future payments on Congressional review
Gives taxpayers an ownership stake and profit-making opportunities with participating companies
Puts taxpayers first in line to recover assets if participating company fails
Guarantees taxpayers are repaid in full — if other protections have not actually produced a profit
Allows the government to purchase troubled assets from pension plans, local governments, and small banks that serve low- and middle-income families
Limits on excessive compensation for CEOs and executives
New restrictions on CEO and executive compensation for participating companies:
No multi-million dollar golden parachutes
Limits CEO compensation that encourages unnecessary risk-taking
Recovers bonuses paid based on promised gains that later turn out to be false or inaccurate
Strong independent oversight and transparency
Four separate independent oversight entities or processes to protect the taxpayer
A strong oversight board appointed by bipartisan leaders of Congress
A GAO presence at Treasury to oversee the program and conduct audits to ensure strong internal controls, and to prevent waste, fraud, and abuse
An independent Inspector General to monitor the Treasury Secretary’s decisions
Transparency — requiring posting of transactions online — to help jumpstart private sector demand
Meaningful judicial review of the Treasury Secretary’s actions
Help to prevent home foreclosures crippling the American economy
The government can use its power as the owner of mortgages and mortgage backed securities to facilitate loan modifications (such as, reduced principal or interest rate, lengthened time to pay back the mortgage) to help reduce the 2 million projected foreclosures in the next year
Extends provision (passed earlier in this Congress) to stop tax liability on mortgage foreclosures
Helps save small businesses that need credit by aiding small community banks hurt by the mortgage crisis—allowing these banks to deduct losses from investments in Fannie Mae and Freddie Mac stocks
This guy is quaking in his boots...he must have some Asian stocks....
REINVEST, REIMBURSE, REFORM
IMPROVING THE FINANCIAL RESCUE LEGISLATION
Significant bipartisan work has built consensus around dramatic improvements to the original Bush-Paulson plan to stabilize American financial markets — including cutting in half the Administration’s initial request for $700 billion and requiring Congressional review for any future commitment of taxpayers’ funds. If the government loses money, the financial industry will pay back the taxpayers.
3 Phases of a Financial Rescue with Strong Taxpayer Protections
Reinvest in the troubled financial markets … to stabilize our economy and insulate Main Street from Wall Street
Reimburse the taxpayer … through ownership of shares and appreciation in the value of purchased assets Make the federal government the largest landlord on the planet. Allow Dems to make Rezko type of "deals" for their buddies since these "assets" will be theirs for the giving.
Reform business-as-usual on Wall Street … strong Congressional oversight and no golden parachutes
CRITICAL IMPROVEMENTS TO THE RESCUE PLAN
Democrats have insisted from day one on substantial changes to make the Bush-Paulson plan acceptable — protecting American taxpayers and Main Street — and these elements will be included in the legislation
Protection for taxpayers, ensuring THEY share IN ANY profits
Cuts the payment of $700 billion in half and conditions future payments on Congressional review
Gives taxpayers an ownership stake and profit-making opportunities with participating companies
Puts taxpayers first in line to recover assets if participating company fails
Guarantees taxpayers are repaid in full — if other protections have not actually produced a profit
Allows the government to purchase troubled assets from pension plans, local governments, and small banks that serve low- and middle-income families
Limits on excessive compensation for CEOs and executivesNote PLEASE that these "limits" for CEO's is NOT a limit on CEO's that caused this mess. OH NO. This is a provision for a limit of deductibility on corporate taxes for CEO's of $400,000 a year. That's ANY CEO....the CEO of Toys R US, the CEO of Ford, the CEO of maybe your company. This is a sneaky bit of socialism the Dems are trying to slip in cause CEO's are too rich any way. BELOW is the limits on CEO's of these failed enterprises.
New restrictions on CEO and executive compensation for participating companies:
No multi-million dollar golden parachutes
Limits CEO compensation that encourages unnecessary risk-taking
Recovers bonuses paid based on promised gains that later turn out to be false or inaccurate
Strong independent oversight and transparency
Four separate independent oversight entities or processes to protect the taxpayer
A strong oversight board appointed by bipartisan leaders of Congress I believe the pub version wants the Board to consist of bipartisan leaders, not just "appointed"
A GAO presence at Treasury to oversee the program and conduct audits to ensure strong internal controls, and to prevent waste, fraud, and abuse
An independent Inspector General to monitor the Treasury Secretary’s decisions
Transparency — requiring posting of transactions online — to help jumpstart private sector demand
Meaningful judicial review of the Treasury Secretary’s actions
Help to prevent home foreclosures crippling the American economy
The government can use its power as the owner of mortgages and mortgage backed securities to facilitate loan modifications (such as, reduced principal or interest rate, lengthened time to pay back the mortgage) to help reduce the 2 million projected foreclosures in the next yearWHOA! Here's where the Dems will have their trial lawyer buddies taking the Feds to court to sue for a reduced principal or lessened interest rate. OR...they'll just take a few bribes a la Chris Dodd and give it to them....none of this is in the pub version.
Extends provision (passed earlier in this Congress) to stop tax liability on mortgage foreclosures
Helps save small businesses that need credit by aiding small community banks hurt by the mortgage crisis—allowing these banks to deduct losses from investments in Fannie Mae and Freddie Mac stocks Here they openly admit Fannie Mae and her brother Freddie were failures.
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The pub version requires the Treasury to institute an FDIC type of thing for mortgage securities. The fed will reimburse banks for loss of income from failure mortgage loans. This is critical and the pubs should stick to it. This way the fat cats on Wall St. rolling around in the hay with deritives and bundled mortgages will have to pay an insurance premium to fund losses on loans.
The pub version ends it all in five years when the entire thing must be negotiated again if all is not settled.
The pub version eliminates that social engineering of limiting paychecks on Americans even if they ARE nasty assed CEOs.
The pub version strips out that bit about lowering principle and interest rates. The mind boggles at how THIS can be corrupted, although the Dems will find a way.