Dodd Bailout Bill More Aggressive Than Treasury Plan, Forgoes "Blank Check"

Politico:

Banking Committee Chairman Christopher Dodd is taking much more aggressive approach to the Treasury bailout plan, demanding foreclosure assistance, limits on executive compensation and profit sharing for taxpayers if the Treasury begins to make money back on the bad debt it plans to purchase.

Dodd's legislation, obtained this morning by Politico, has just started to circulate among Senate legislative directors. His plan addresses many of the concerns raised by Democrats and Republicans who are concerned about handing over $700 billion blank check to Treasury Secretary Henry Paulson.

While the Treasury would receive much of the authority that it wants to buy up distressed assets, Dodd's add-ons have many of the populist ideas that will appeal to skeptical Democrats. His plan is also broader than the one unveiled by House Financial Services Chairman Barney Frank (D-Mass.), so there will be significant negotiations in the days ahead between the House and Senate if Congress is to pass a bill by the end of the week.

Read the whole story: Politico

Comments

[UnbiasView]

Honestly, it doesn't matter where you stand politically . . . how can we honestly turn to the people currently in charge of the finance committees for solutions on this one? Left, right, up or down these people knew this was coming and didn't do a thing not to mention some were involved in taking sweetheart loans etc. from guilty parties.

This whole thing started in the 1970s with "The Community Reinvestment Act" which is a United States federal law that requires banks to offer credit throughout their entire market area and prohibits them from targeting only wealthier neighborhoods with their services.

Government forced banks to give risky loans . . .

[viflyer]

I am sorry but you are missenformed about the ACT. Banks were not required to offer risky loans.
Your listening to the righties lies pal. People STILL had to qualify. Banks had been turning down QUALIFIED blacks etc. Please do some more research!

[dgscol]

We certainly do not want a blank check, nor do we want Dodd's plan. This government does not have the confidence of the American people, and to pass this legislation now is a swindle. SWINDLE HUGE SWINDLE. A HUSTLE. PURELY AND SIMPLY. IT IS a CRIME.

Vote anyone who votes for this, out of the government. They are traitors. They know they do not have the trust and confidence of the people, and yet they are attempting to slide this through in the waning hours of this administration. Have they no shame? NO COMMON SENSE? They know it is a swindle and yet they are shamelessly trying to move this forward. I am outraged.

[UnbiasView]

"This government does not have the confidence of the American people"

They did when they passed the Community Reinvestment Act . . . I guess giving home loans to people with bad credit isn't the best idea.

From 2003:

Representative Barney Frank (D-MA) claimed of the thrifts "These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis, the more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

Representative Mel Watt (D-NC) added "I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing.

[Marlyn]

Right, a $700 B shell game.

[viflyer]

Please, please don't listen to this guy, he is totally misinformed. He is reading the Republican taliking points that they are using to TRY and lay the blame on the Dems and it is all a crock. I wish he would use his brain and do some actual research on this stuff!

[Marlyn]

"IT IS a CRIME."

YES, and crime that may not be reviewed by any court of law.

Senator Dodd's plan provides no avenue for ACCOUNTABILITY. His plan is the shiny bobble that we are to look at instead of asking how this happened, and why are they unwilling to submit to interrogation and the law?

[Marlyn]

Dodd's plan let's them get away with it. NO ACCOUNTABILITY! Why has this economic collapse happened and who was/is at the controls?

"Decisions by the Secretary pursuant to the authority of this Act are NON-REVIEWABLE" ??? WTF

"may not be reviewed by any court of law" ???

Dodd is also guilty I guess, so he's fine with putting the culprits BEYOND the LAW !!!

[OnePartyEqualsTyranny]

Yes, all birds of a feather flock together. They all believe their not accountable. He’s just trying to sell this to the American People in the middle of both sides of the isle.

[leftLibertarian]

The Bush Plan would have made Soviet Russia proud.

Say NO to Comrade Bush's Plan. This is non-negotiable!

[honeydiva]

Oh it's gone public and it won't fly now...so there will be no absolute power this trip.

[Semper]

The crime is the lack of education that most people have about our economic system or an understanding of their own finances. And you can throw in government regulations and how which ones work ans which ones don.t. Our system has to be partially regulated to make in work. A free fall system sounds good, it also is use to generally sell the program to the public, because most Americans believe that they are smart, people are rational and we always do the right thing, so let the markets regulate itself. Sorry, folks we investment professionals know better, its how we make our money, and the less governmental interference we have the more money we make. Our system works on greed, that's at the basis of almost all our success and it done on both sides(the business sector and the public sector). Businesses want to make profits, pay no taxes, use plants until they are no longer safe, pay less salary, pay executives compensation in salary and stocks, provide lavish expense accounts, avoid product warranties, or merchantability, receive pension plans that we manage, and I could stay on this subject for weeks without repeating myself. Today's business are bankrupt in ideas, talent, training, financial management and most are not competitive.There are no model companies west of the Mississippi and nepotism is the mantra of the day. I see grown men and women who are holding on to a fraid rope that's going to break at any moment.

[priorato]

FINALLY A DEM WITH A SPINE! Thank GOD for Dodd and others like him that are not staring glassy-eyed and mute as the Bush Administration bulldozes another catastrophic waste of taxpayers money through Congress. This Administration HAS NO CREDIBILITY, SO WHY IS NO ONE QUESTIONING THE LEGITIMACY AND SCOPE OF THIS BAILOUT? It seems like Wall Street gambled and lost because home builders continued to build and flooded the market with homes causing prices to fall. This fall in homes' market values made many of the subprime mortgages worthless and now illiquid. Wall Street had no problems for the past 6 years raking in the money and awarding outlandish bonuses -- but now -- they are smarting from the mounting losses and tightening up the credit markets. GOOD -- let's have a tightening of the belt. We need it -- we've been living beyong our means since 1980.

The bottom line is this: Dems better assert themselves and write some CLEAR legislation that does not give Paulson unlimited powers and immunity. Man, this Administration -- they just don't want to be accountable for anything! It makes me sick.

[deeppeace]

We only get one shot to do this right. Build in the oversight and take out the untouchability of the secretary. Someone needs to be reminded this is not an empire.

[CharlesJ]

I agree with Dodd on this with the exception that I do not believe he is taking this far enough. The money gained in interest so to speak should be used to pay off the national debt as well as I believe there needs to be much stricter controls and over sight. The Bush administration is trying to pull off a fast one here and they need to be stopped in thier tacks.
One thing that needs to be insisted upon is that no Lobbiest, associated firm, politician, currently in office or to be leaving office can benifit in any way from this bail out. Meaning they can not go to work for or receive any form of payments from any company receiving bail-out assistance now or anytime during the next 25 years; this also includes and removes any promise to do so in now and in the future by either the politician or the company.
Plus there needs to be a monthly report filed on line for viewing by the American people, and an independent audit of this bail-out should also be posted on line for review by the American people.
Since we are footing the bill, with our future tax dollars we have every right to be completely informed and involved in this whole process.

[MourningDude]

If Dodd simply REMOVED that provision, the money would go back into the budget, to offset spending and lower the budget deficit. Instead, he added this set-aside to spend that money on more of the same social engineering that got us into this mess in the first place.

[Hopalongpoppyseed]

Obviously, there has been way too much regulation.

[KOisGod]

Social engineering = bushcode talk for soylent green

[MourningDude]

This is reminiscent of the $8 billion slush fund set-aside that Dems tacked onto the Fannie Freddie bailout.

Dems are so committed to fleecing the public that they can't help but take a bite at the apple every chance they get.

[j0hnwi11iams]

Paulson wants a check for $700,000,000,000 with no strings attached and you still think it's the DEMS trying to rip you off?

[kesiac]

So you have no problem with handing Bush and his ilk a 700Billion check, but you do have a problem with demanding foreclosure assistance, limits on executive compensation and profit sharing for taxpayers if the Treasury begins to make money back on the bad debt it plans to purchase? Thie latter you call fleecing. What would you call te former?
This is not a rhetorical question.

[MourningDude]

Ummm, if we didn't make a "profit" on the $700 billion check, there wouldn't be any "profit" for Dodd to put into his slush fund, would there?

The reason people like Dodd and Obama always try to tack the slush funds and set-asides onto "emergency" spending provisions like this is because they can't pass them on their own merits.

[Marlyn]

"slush fund" ???

Now you've made me think of Nixon. Ugh.

[PT6]

Five steps in the Right Direction!

Lets GET EQUITY FOR OUR $700,000,000,000 in CASH!

Lets take OWNERSHIP in the Failing Banks, put in smart and honest managers and stabilize them.

Then sell them back to Wall Street above or near what we paid for them.

NO EQUITY then NO CASH!

At minimum we should have EQUITY shares in these Banks before we help them.

[MourningDude]

Steve Forbes called the $85 billion AIG bailout a "loan shark" deal, for which the government could expect to make hundreds of millions, if not billions in profits. They're charging LIBOR+8.5% on any money borrowed against that line of credit, which now adds up to ~15%.

As Dodd points out, this "bailout" is likely to make money for the government, and he's first in line to set aside as much of that as he can to push more of the same social engineering that got us into this mess in the first place.

No thanks.

[arebrown]

so this time WE ARE GOING TO KNOW HOW OUR TAXES ARE SPEND ? or democrats once again will play DEAD like all this 8 years ?



Ps.after obama fails to capture the presidency, remember that superdelegates were who picked him

[UriahHeep]

Polls schmolls, the only one that counts is the one on election day. As soon as the debates are over and it becomes clear that Obamessiah can't put two declarative sentences together in a row you can put this one in the bank.

Say, isn't that the same Chris Dodd who was the #1 recipient of campaign contributions from Fannie Mae and Freddie Mac? Number 2 was, wait, wait...B. Hussein Obama!

[OnePartyEqualsTyranny]

Look beyond the talking points and you’ll find the Truth.

[Marlyn]

"Obamessiah can't put two declarative sentences" ???

That's actually funny since Obama is one of the greatest speaker of our time.

[DoctorDonut]

Whatta Legacy

http://www.theweeklydonut.com/index.php/category/bushs-playhouse/

[TXfemmom]

I phoned my Representative, a Republican in a tight race with a Dem, and told them NO FOREIGN BANK BAILOUTS, and now I have to call and say NO TO THE NO ONE CAN QUESTION THE SECRETARY/OR BUSH by way of that, in this bailout. The operator admitted that they had received thirty calls against the bailout of foreign banks such as UBS and none for it, and this must go the way of that. The DEMS have to get out and make their case on the foreign bank issue and the NO BLANK CHECK THING, AS WELL.

This is just a last minute thing for Bush to reward the people who have destroyed this country for the last eight years.