“Is This the United States Congress or the Board of Directors of Goldman Sachs?”
The House is set to vote today on a $700 billion emergency bailout plan for the financial industry. The proposed legislation was forged during a marathon negotiating session over the weekend between lawmakers from both parties and Treasury Secretary Henry Paulson. The 110-page bill would authorize Paulson to initiate what is likely to become the biggest government bailout in US history, allowing him to spend up to $700 billion to relieve faltering banks and other firms of bad assets backed by home mortgages, which are falling into foreclosure at record rates.
While the legislation creates multiple levels of Congressional oversight, Paulson would be granted broad latitude to purchase any assets from any firms at any price and to assemble a team of individuals and institutions to manage them. The measure would also require federal officials to rein in excessive compensation for corporate executives who participate in the bailout.
Money for the program would be released in segments, with the Treasury secretary receiving $250 billion dollars immediately. Paulson has said he expects to spend about $50 billion a month on the program.
The Senate could take up the bill by Wednesday. The financial package looms as a final piece of business before lawmakers leave to campaign for the November elections.
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posted by TheFuriousGourmet | 9:16 PM
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