Posted on 09/28/2008 12:38:39 PM PDT by TLI
http://money.cnn.com/2008/09/28/news/pdf/index.htm
(Excerpt) Read more at money.cnn.com ...
106 pages... Ouch!
Ouch is right!
Congress has left 700-billion dollars worth of dung on our doorstep and expects us to say thank you.
Ok- it’s dated with today’s date. that’s promising- we’ve had soooo many tidbits and partials and 4 day-old ones..this seems current.
Alas, poor capitalism. I knew him well, Horatio.
TARP... troubled asset relief program. More like CARP...
Yea, this is it.
Page 76, #12: ‘‘$11,315,000,000,000’’.
Our new national debt is to be $11.3 trillion dollars. We’re broke.
or CRAP
“Troubled Asset Relief Program”, TARP, is the name given to this program in general. TRAP would be better.
Thanks- reading now...
Can a Tax Person get down to Pg. 38-41 and try to make sense of what they are talking about where they are changing to tax code for Golden Parachutes, please.
ACORN is still in there.
18 ø(d) TRANSFER OF A PERCENTAGE OF PROFITS.—
19 ¿
20 ø(1) DEPOSITS.—Not less than 20 percent of
21 any profit realized on the sale of each troubled asset
22 purchased under this Act shall be deposited as pro
23 vided in paragraph (2).
24 (2) USE OF DEPOSITS.—Of the amount re
25 ferred to in paragraph (1)
1 ø(A) 65 percent shall be deposited into the
2 Housing Trust Fund established under section
3 1338 of the Federal Housing Enterprises Regu
4 latory Reform Act of 1992 (12 U.S.C. 4568);
5 and
6 ø(B) 35 percent shall be deposited into the
7 Capital Magnet Fund established under section
8 1339 of that Act (12 U.S.C. 4569).
Go to page 22. 20% of the profit of sale is being diverted as follows:
65% to the Housing Trust Fund
35% to the Federal Magnet Fund
Both of these are low-income housing grant entities. Gee, wonder what group will be getting its hands on this?????
The guy there told me his understanding was that there was NO MONEY for ACORN in the bill.
I told him about FREEPers concern (he claims to know about Free Republic) about the top of page 22, where 65% of monies are given to a "Housing Trust Fund", and he said he would check on it...
Erroneously stated in my last post. It’s the Capital Magnet Fund.
Here’s some info on it:
http://cdfi.org/uploads/other/Capital%20Magnet%20Fund%20Overview.pdf
Goodies for more low income housing from our money
See http://www.cbsnews.com/stories/2008/09/27/politics/politico/thecrypt/main4483168.shtml
Per Barney Frank’s office the money’s would not go directly to ACORN, but state and local governments could send a portion of the money they recieved to ACORN.
Slight of hand.
“ACORN is still in there.”
Yep
More info in the Capital Magnet Fund:
Capital Magnet Fund
Establishes a Capital Magnet Fund (CMF), which will be an account within the Community Development Financial Institutions (CDFI) Fund at the Department of Treasury, which is also allowed to receive additional funding from other sources.
Eligible recipients are Treasury-certified Community Development Financial Institution or non-profits that have at least one of their purposes the development or management of affordable housing.
Eligible recipients can apply for a competitive grant through the Treasury to help develop, preserve, purchase, and rehabilitate affordable housing for mostly extremely low, very low, and low income families. Grant funds may also be used for economic development or community service facilities in conjunction with affordable housing to help stabilize a low-income or rural area.
The CMF may also be used to provide loan loss reserves, to capitalize a revolving loan fund or an affordable housing fund, or for risk-sharing loans.
Applications for the competitive grants are required to include a detailed description of the types of affordable housing, economic, and community revitalization projects the institution would use the grant for, and the anticipated time frame they intend to use it.
No institution can be awarded more than 15% of all Capital Magnet funds available for grants in that year.
The Secretary is encouraged to fund activities in rural or underserved metropolitan areas.
Among the criteria in determining which areas should be served are:
o the percentage of low income families or the extent of poverty
o the rate of unemployment or underemployment
o the extent of blight and disinvestment
o projects targeting extremely low, very low , and low income families in an area of economic distress
o or any other criteria chosen by the Secretary
Institutions receiving grants must spend the funds within two years from the date of receiving them.
Prohibited uses are political activities, advocacy, lobbying, counseling services, travel expenses, and endorsements of a particular candidate or party.
Each grantee must track its funds by issuing periodic financial and project reporting, and audit requirements. If the Secretary is not satisfied with the compliance, the grantee may receive fewer funds, have to pay the Treasury back, or have their grant terminated.
The Secretary must submit a periodic report to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services describing the activities these funds are being used for.
http://www.nlihc.org/template/page.cfm?id=40
Note that grants can go to non-profits who work in low-income housing.
So, roughly 7% of any profit made on our $700 billion will go to non-profit housing groups. Nice chunk of change.
Any profit made should be returned to the taxpayer in the form of rebates for having to risk our future on this.
Re: Golden Parachutes
14 (C) a prohibition on the financial institu
15 tion making any golden parachute payment to
16 its senior executive officers during the period
17 that the Secretary holds an equity position in
18 the financial institution.
19 (b) AUCTION PURCHASES.—Where the Secretary de
20 termines that the purposes of this Act are best met
21 through auction purchases of troubled assets, and only
22 where such purchases in the aggregate exceed
23 $300,000,000, the Secretary shall prohibit any golden
24 parachute for any employee hired after the successful par
25 ticipation in such an auction who also qualifies as a cov
1 ered executive under section 162(m)(5)(D) of the Internal
2 Revenue Code of 1986.
16 (2) GOLDEN PARACHUTE RULE.—Section 280G
17 of the Internal Revenue Code of 1986 is amended—
18 (A) by redesignating subsection (e) as sub19
section (f), and
20 (B) by inserting after subsection (d) the
21 following new subsection:
22 ‘‘(e) SPECIAL RULE FOR APPLICATION TO EMPLOY23
ERS PARTICIPATING IN THE TROUBLED ASSETS RELIEF
24 PROGRAM.—
1 GENERAL.—In the case of the sever
2 ance from employment of a covered executive of an
3 applicable employer during any applicable taxable
4 year, this section shall be applied to payments to
5 such executive with the following modifications:
6 ‘‘(A) Any reference to a disqualified indi
7 vidual (other than in subsection (c)) shall be
8 treated as a reference to a covered executive.
9 ‘‘(B) Any reference to a change described
10 in subsection (b)(2)(A)(i) shall be treated as a
11 reference to an applicable severance from em
12 ployment of a covered executive, and any ref
13 erence to a payment contingent on such a
14 change shall be treated as a reference to any
15 payment made during an applicable taxable
16 year of the employer on account of such appli
17 cable severance from employment.
18 ‘‘(C) Any reference to a corporation shall
19 be treated as a reference to an applicable em
20 ployer.
21 ‘‘(D) The provisions of subsections
22 (b)(2)(C), (b)(4), (b)(5), and (d)(5) shall not
23 apply.
24 ‘‘(2) DEFINITIONS AND SPECIAL RULES.—For
25 purposes of this subsection—
1 A) DEFINITIONS.—Any term used in
2 this subsection which is also used in section
3 162(m)(5) shall have the meaning given such
4 term by such section.
5 ‘‘(B) APPLICABLE SEVERANCE FROM EM
6 PLOYMENT.—The term ‘applicable severance
7 from employment’ means any severance from
8 employment of a covered executive by reason
9 of—
10 ‘‘(i) an involuntary termination of the
11 executive by the employer,
12 ‘‘(ii) any bankruptcy or liquidation of
13 the employer, or
14 ‘‘(iii) the placement of the employer in
15 receivership.
16 ‘‘(C) COORDINATION AND OTHER
17 RULES.—
18 ‘‘(i) IN GENERAL.—If a payment
19 which is treated as a parachute payment
20 by reason of this subsection is also a para
21 chute payment determined without regard
22 to this subsection, this subsection shall not
23 apply to such payment.
1 REGULATORY AUTHORITY.—The
2 Secretary may prescribe such guidance,
3 rules, or regulations as are necessary—
4 ‘‘(I) to carry out the purposes of
5 this subsection and the Economic Re
6 covery and Corporate Accountability
7 Act of 2008, including the extent to
8 which this subsection applies in the
9 case of any acquisition, merger, or re
10 organization of an applicable em
11 ployer, and
12 ‘‘(II) to apply this section and
13 section 4999 in cases where one or
14 more payments with respect to any in
15 dividual are treated as parachute pay
16 ments by reason of this subsection,
17 and other payments with respect to
18 such individual are treated as para
19 chute payments under this section
20 without regard to this subsection.’’.
21 (3) EFFECTIVE DATES.—
22 (A) IN GENERAL.—The amendment made
23 by paragraph (1) shall apply to taxable years
24 ending on or after the date of the enactment of
25 this Act.
1 PARACHUTE RULE.—The
2 amendments made by paragraph (2) shall apply
3 to payments with respect to severances occur
4 ring during the period during which the au
5 thorities under section 101(a) are in effect (de
6 termined under section 120).
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