Bail Out Boondoggle
Via DC Examiner:
House Republican Whip Roy Blunt’s office provides a 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
Via the House GOP Office – H/T Gateway Pundit for noting the pork that the GOP was able to remove from this bailout. I’d love to link to a copy of the bill, but there is none to link to.
Two points to keep in mind:
** We have yet to see legislative language. House Republicans have said the bill language should be posted online for public review at least 24 hours before the vote.
** House Republicans will meet later today to review these changes and determine next steps.
Help for Main Street:
** If after five years, the government has a net loss as a result of the purchase program, the President is required to submit a proposal to recoup those losses from the entities that benefited from this program. [Negotiated by House GOP]
** Provides for warrants of non-voting stock in companies receiving assistance so that taxpayers have an opportunity to recoup any losses.
** Allows community banks to take capital losses on Government Sponsored Entity (GSE) assets against ordinary income, providing much needed relief for local banks. [House GOP Priority]
** Authorizes government agencies that hold mortgages to do work-outs with troubled borrowers provided such workouts do not harm the interests of taxpayers. [Negotiated by House GOP]
Assistance Funded By Wall Street, Not Main Street:
** Requires the establishment of an insurance guarantee program that in lieu of purchasing assets with taxpayer funds is available to insure assets at no cost to the taxpayer. Costs would be fully paid for by participating companies (i.e. those receiving the assistance). Assets insured by the program would count against the total funds the Secretary would otherwise have available to make purchases. [House GOP Priority]
Eliminating Special Interest Earmarks:Prior to House Republicans stepping in, Democrats had loaded up the bill with special interest provisions. Provisions removed by House Republicans include:
** Provision to provide unions and other activist groups with proxy access for corporate boards
** Provision to mandate shareholder votes on compensation issues (union priority)
** Diversion of funds into a housing fund to support left-wing activist groups like ACORN
** A provision to allow trial judges to arbitrarily adjust mortgages, creating bonanza for trial lawyers
** A provision to require the government to sell to state and local governments at a discount homes the government acquires as a result of foreclosure
Ed Morrissey posted a ‘Myth vs Fact’ sheet from his source close to the bailout compromise. Just like the DC Examiners side-by-side comparison is shows how much influence the GOP lawmakers had on this alleged final draft. I’d love to link to the draft, but it is not available.
Michelle Malkin advocates Kill The Bill