I. Stabilizing the Economy
The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion to the Secretary of the Treasury to buy mortgages and other assets that are clogging the balance sheets of financial institutions and making it difficult for working families, small businesses, and other companies to access credit, which is vital to a strong and stable economy. EESA also establishes a program that would allow companies to insure their troubled assets.
II. Homeownership Preservation
EESA requires the Treasury to modify troubled loans – many the result of predatory lending practices – wherever possible to help American families keep their homes. It also directs other federal agencies to modify loans that they own or control. Finally, it improves the *HOPE for Homeowners program by expanding eligibility and increasing the tools available to the Department of Housing and Urban Development to help more families keep their homes.
III. Taxpayer Protection
Taxpayers should not be expected to pay for Wall Street’s mistakes. The legislation requires companies that sell some of their bad assets to the government to provide warrants so that taxpayers will benefit from any future growth these companies may experience as a result of participation in this program. The legislation also requires the President to submit legislation that would cover any losses to taxpayers resulting from this program from financial institutions.
IV. No Windfalls for Executives
Executives who made bad decisions should not be allowed to dump their bad assets on the government, and then walk away with millions of dollars in bonuses. In order to participate in this program, companies will lose certain tax benefits and, in some cases, must limit executive pay. In addition, the bill limits “golden parachutes” and requires that unearned bonuses be returned.
V. Strong Oversight
Rather than giving the Treasury all the funds at once, the legislation gives the Treasury $250 billion immediately, then requires the President to certify that additional funds are needed ($100 billion, then $350 billion subject to Congressional disapproval). The Treasury must report on the use of the funds and the progress in addressing the crisis. EESA also establishes an Oversight Board so that the Treasury cannot act in an arbitrary manner. It also establishes a special inspector general to protect against waste, fraud and abuse
* Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today announced his intention to introduce legislation that will create a new program within the Federal Housing Administration (FHA) to provide aid to distressed borrowers currently trapped in mortgages they cannot afford. Under the “HOPE for Homeowners Act of 2008," new mortgages that are offered by FHA-approved lenders will refinance abusive loans at a significant discount for homeowners facing difficulty meeting their mortgage payments.
So then from reading this summary, its STILL A BAILOUT.
The House is still voting and we'll have to wait and see which Republicans
will keep to NO BAILOUT but instead extending insurance to banks, Wall Street to cover the bad debt allowing them to remove the debt from the books in order to unfreeze money needed for mortgages and other loans.
Also III calls for companies that sell some of their bad assets to the government to provide warrants so that taxpayers will benefit from any future growth these companies may experience.
However what if these companies eventually fails? Then how will the warrants be honored?
And under V the legislation gives the Treasury $250 billion immediately, then requires the President to certify that additional funds are needed ($100 billion, then $350 billion subject to Congressional disapproval).
Is there any doubt that under a Obama administration and Democrat Congress that the "additional funds" would not be approved?
And also, EESA also establishes an Oversight Board so that the Treasury cannot act in an arbitrary manner.
Who will be on the Oversight Board and who chooses? Will it be stacked with people like Paulsen who created the panic and was the Chairman and Chief Executive Officer of Goldman Sachs since the firm’s initial public offering in 1999.Or maybe Obama-type buddies like Jim Johnson, corporate finance managing director for Lehman Brothers. Johnson served as Fannie Mae CEO from 1991 to 1998
Or Franklin Raines, the head of Fannie Mae from 1998 to 2004,who agreed in April to pay nearly $25 million in a settlement with the government in an accounting scandal.
And what do we know about this new “HOPE for Homeowners Act of 2008", other than Senator Chris Dodd (D-CT) receiving the highest amount in contributions from Fannie and Freddie and as Chairman of the Senate Committee on Banking, Housing, and Urban Affairs SHOULD have been aware of this looming economic meltdown, authored it.
The bottom line, as this bill is presented I say VOTE NO House Republicans and do not settle for anything less than an INSURANCE PROGRAM as opposed to a BUY OUT. I spoke with Congressman Rogers Saturday at a fund raiser by phone. I asked him if House Republicans will hang tough and not approve or vote for a BAILOUT. He assured me that he would not vote for a BAILOUT.
Shortly, we will know who has voted against and for this Bill.
McCain/Palin should come out AGAINST this bill as it stands
Most Americans are against it
This is a perfect chance to point out why and who contributed to the problem, Dodd, ACORN, with Obama ties etc
And why the Republican House plan protects taxpayers because IT IS NOT A BAILOUT
The insurance plan would only cost 35 billion as opposed to 700 million!
And Republicans should call for a complete investigation by the FBI, no "bi-partisan" committee
ACORN is out of the bill but I believe that Dodd's new program could funnel money to ACORN and probably is the reason he proposed it...as a means for libs to continue to rape the economic system
Contact Congressman Rogers HERE;
133 Cannon House Office Building
Washington, D.C. 20515
Phone: (202) 225-4872
Fax: (202) 225-5820
1327 E. Michigan Ave.
Lansing, Michigan 48912
Phone: (517) 702-8000
Toll Free: 877-333-MIKE
Fax: (517) 702-8642
Contact House Republicans HERE;
House Republican Conference
Main Office Phone: (202) 225-5107
Press Office Phone: (202) 226-9000
Office Fax: (202) 226-0154