Bailout Plan Details:Bailout Bill Text – Bailout Bill text is here.You can read the complete Bailout Bill Text that the House will vote on in a few hours.Bailout Bill Text is after the jump.
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE MORTGAGE-RELATED ASSETS
Section 1. Short Title.
This Act may be cited as ____________________.
Sec. 2. Purchases of Mortgage-Related Assets.
(a) Authority to Purchase.–The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.
(b) Necessary Actions.–The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:
(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;
(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;
(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and
(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary shall take into consideration means for–
(1) providing stability or preventing disruption to the financial markets or banking system; and
(2) protecting the taxpayer.
Sec. 4. Reports to Congress.
Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.
Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.
(a) Exercise of Rights.–The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.
(b) Management of Mortgage-Related Assets.–The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.
(c) Sale of Mortgage-Related Assets.–The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.
(d) Application of Sunset to Mortgage-Related Assets.–The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time
Sec. 7. Funding.
For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Sec. 9. Termination of Authority.
The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.
Sec. 11. Credit Reform.
The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.
Sec. 12. Definitions.
For purposes of this section, the following definitions shall apply:
(1) Mortgage-Related Assets.–The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.
(2) Secretary.–The term “Secretary” means the Secretary of the Treasury.
(3) United States.–The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.
“The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.”
Two problems with the opening sentence. Prior approval by the oversight committee should be required and second the “mortgage-related assets” should be with full recourse against the lending institution that origianted the subprime loan. Make the guilty responsible.
how is acorn getting any money?
there is to much crooked/dishonest items attached to this bill.
there should not be a bailout, but a loan to these banks to pay back.
the president could also help instead of pushing this bailout.
it all seems very crooked and dishonest
There is no mention that the “wall street wizards aka CROOKS” still get their vacations and bonuses. We are all struggling and can’t even think about a vacation and certainly no bonuses for us blue collar workers. These crooks should have to repay all bonuses recieved over the passed 5 years to decrease the $700 billion bailout. No paid vacations. Have they earned a vacation? Have they truely earned these bonuses? Those greedy crooks which have ruined our economy? We have been in a recession for quite some time now. We are just a squeak away from the biggest depression this nation has ever experienced. They are NOT being punished for their greed, just well taken care of by our politicians at the tax payers’ expense. Anything pushed by W. should be the very first clue for us all how crooked this so called bail out is. Then the gall of the politicians to add all the PORK is just the culmination to the crookedness of it all! Wall Street and Washington must think we common folk are just a bunch of illiterate, uneducated barbarians!! Just like Skull and Bones!! Well ,we aren’t. We should have the largest revolt/uprising ever. Just like the Boston Tea Party, etc. I love this country and am tired of all the greed at the top. I will not stand idly by and not express my opinions. I will act upon them if need be. Americans have to unite and take our country back.
If you really want to make a difference then, simply do the following: 1. Stop paying your mortgage; 2. Gather as many credit cards as you can, drain them, then default; 3. Stall collections, foreclosures, and any attempt by the banks to collect.
This, I guarantee, will force them to change policies, because lost profits trickle up the line. Money flows … money supplies. This is the bloodline of the economy because at some point we went from cash / asset based to credit / “derivative” based, and this inflates prices, profits, and proliferates management, bonuses, etc. We are actually in a very good state right now …
sec 8 gives the sec more power than the president,no one can review or question whats going on with this act