Posted by: Lipstick Piggy | September 28, 2008

SIDE-BY-SIDE of BailOut — See DEMs Waste Thwarted | Obama claims Responsibility for Dem Proposal

Obama claims credit for Pork filled BailOut bill

Sunday, September 28, 2008

(AP Photo)
WASHINGTON — Democratic presidential nominee Barack Obama said Sunday his Republican rival deserves no credit for helping to forge a tentative agreement on the $700 billion bailout of Wall Street.

I
nstead, Obama said he deserves credit for making sure the proposal includes safeguards for taxpayers. Obama said he is inclined to support the bailout because it includes increased oversight, relief for homeowners facing foreclosure and limits on executive compensation for chief executives of firms that receive government help.

[EDITOR’S NOTE : clearly we can see that the Republicans led by Sen McCain removed at least some of the Pork from the bill.  I can’t wait to see the whole thing and see what is left.  THANK YOU JOHN MCCAIN AND REPUBLICANS.  from a Democrat…eep]

From DCExaminer:

House Republican Whip Roy Blunt’s office provides this side-by-side comparison of Treasury Secretary Henry Paulson’s original Wall Street bailout proposal with the final compromise agreed to over the weekend by congressional and Treasury negotiators: (see full article

 And now we see the REAL VOICE OF REASON and protection of the People by John McCain.  No wonder the Dems wanted this behind closed doors.  Where is transparency?

 

Side-by-Side Comparison

Side-by-Side Comparison of Rescue Legislation           

Issue

Paulson Plan

Frank-Dodd

Final Bill

$

700B

700B – Delivered in 150B traunches that can be delayed by  Congressional disapproval (and a Presidential signature)

250B – Immediately available to the Secretary.

100B – Available upon report to Congress.

350B – Available ONLY upon Congressional action.

 

Insurance (HouseRepublican Mode)

 

 

Requirement to establish mandatory insurance/guarantee program at no expense to the taxpayer.  “Pay to play” for participating companies, based on risk.

 

Executive Compensation

 

Far reaching executive compensation standards that would affect companies not even involved in this financial crisis.  Additionally, the bill lowered the deduction on executive pay to $400,000 for ALL companies.

Workable prohibitions on executive compensation to ensure bad actors are not rewarded. In a total takeover (like what happened with AIG), there will be no golden parachutes or severance pay.  For equity participation, over $300M total ban for top 5 executives on golden parachutes and tax deduction limit on compensation above $500,000.

 

Oversight/Transparency

 

Onerous, unworkable and repetitive reporting and oversight requirements, hindering proper implementation of program. 

Establishment of bipartisan oversight commission, split evenly between minority and majority.

Practical reporting requirements to ensure proper reports to Congress and the public.

 

If after 5 years the government has a net loss of taxpayer funds as a consequence of the purchase program, the President will be required to submit a legislative proposal to recoup such funds from program beneficiaries.

 

“Say on Pay”

Union Take Over of Corporate Boards

 

So-called “say on pay” or “proxy access” which propose to mandate a nonbinding shareholder vote on proxy access and other corporate governance issues for all companies in which the Treasury Department buys a direct stake in certain assets. 

 

OUT

Affordable Housing Slush Fund (ACORN Fund)

 

Included a giveaway that would force taxpayers to bankroll a slush fund for ACORN – an organization fraught with controversy for, among other scandals, its fraudulent voter registration activities on behalf of Democratic candidates. 

 

OUT

Bankruptcy “Cramdown” (aka, trial bar give-away)

 

Included so-called “cramdown” provisions allowing bankruptcy judges to reduce mortgage principal under the guise of helping those at risk of foreclosure.  If enacted into law, the provision would be a bonanza for trial lawyers and undercut the effectiveness of any economic recovery effort by making it even harder to value mortgage-backed securities.

 

OUT


Mark-to-Market Accounting

 

 

GAO study on the impacts of mark-to-market accounting standards and effects on the banking crisis.  Restatement of existing authority to suspend mark-to-market.

 

Equity/Warrants

 

Mandatory equity interest in all participating firms. 

Mandatory equity interests in total takeover scenario.  Proportional equity interest based on percentage of assets sold if deemed appropriate Secretary.

Tax benefits for community banks

 

 

Ability for community banks to take capital losses on GSE assets against ordinary income.

 

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