Congress on Sunday made public a proposed bill that would enact a far-reaching government rescue of the financial system.[...]
Among the provisions:
- The $700 billion would be disbursed in stages, with $250 billion made available immediately for the Treasury's use.
- Curbs will be placed on the compensation of executives at companies that sell mortgage assets to Treasury. Among them, the bill would limit golden parachutes to executives at companies that participate; they will not be able to deduct the salary they pay to executives above $500,000.
- An oversight board will be created. The board will include the Federal Reserve chairman, the Securities and Exchange Commission chairman, the Federal Home Finance Agency director and the Housing and Urban Development secretary.
- Allow for the Treasury to receive the option to take ownership stakes in participating companies under certain circumstances.
- Treasury may establish an insurance program - with risk-based premiums paid by the industry - to guarantee companies' troubled assets, including mortgage-backed securities, purchased before March 18, 2008.
Lawmakers' goal is to shore up a deal before financial markets around the world open on Sunday evening.
When the going gets weird, the weird turn pro. - Hunter S. Thompson