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Lawmakers: Financial bailout agreement reached

By JULIE HIRSCHFELD DAVIS, Associated Press Writers 16 minutes ago

WASHINGTON - Warned of a possible financial panic, key Republicans and Democrats reported agreement in principle Thursday on a $700 billion bailout of the financial industry and said they would present it to the Bush administration in hopes of a vote within days.
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Emerging from a two-hour negotiating session, Sen. Chris Dodd, D-Conn., the Banking Committee chairman said, "We are very confident that we can act expeditiously."

"I now expect that we will indeed have a plan that can pass the House, pass the Senate (and) be signed by the president," said Sen. Bob Bennett, R-Utah.

The bipartisan consensus on the general direction of the legislation was reported just hours before President Bush was to host presidential contenders Barack Obama and John McCain and congressional leaders at the White House for discussions on how to clear obstacles to the unpopular rescue plan.



"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Sep 25th, 2008 at 02:16:03 PM EST

Lawmakers Agree on `Principles' of Rescue Deal

Sept. 25 (Bloomberg) -- Congressional negotiators said they reached a bipartisan agreement on a ``set of principles'' for a $700 billion financial-rescue package to inject fresh capital into the paralyzed credit markets.

Lawmakers agreed that legislation should include provisions on oversight of the Treasury-run program, limits on executive pay and a section on homeownership preservation, Senate Banking Committee Chairman Christopher Dodd said.

Still unresolved is whether the bill will include a provision allowing bankruptcy judges to change mortgage terms. The Treasury would have $250 billion available immediately, said a Senate aide, who requested anonymity.

(...)

Frank said a Democratic provision to let judges rewrite mortgage terms for homeowners in bankruptcy proceedings is the ``most controversial'' and remains an ``outstanding issue.''

``We pushed very strongly for it,'' Frank said. ``We haven't resolved it yet.''

``Bankruptcy is the one issue where our Republican colleagues told us they thought that would blow up the whole thing,'' Frank told reporters. ``So it hasn't been finally resolved, but that's on the table.''

That's still a rather major disagreement...

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Thu Sep 25th, 2008 at 03:24:30 PM EST
[ Parent ]
Yeah, the AP article said "key Republicans and Democrats reported agreement in principle."  But they had fewer details as to differences.  The bankruptcy provision is a pretty important detail.  The other concern I have is the intended use of the money.  I doubt that recapitlizing MS and GS is the best and highest use.  More like flushing that money and having to raise more for what we should have used it for to begin with.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Sep 25th, 2008 at 04:08:34 PM EST
[ Parent ]
There's a game of chicken going on.  McCain desperately wants to vote against it and try to play the populist card.  (We all get a good laugh at that, but remember that people are stupid.)  And Boehner wants to help him.  But how does McCain do that after all his drama-queen antics about suspending the campaign to get a bill?

He's completely incoherent.  And the press is starting to pick up on it.  They're also picking up on the fact that his "suspension" was a lie.

Bush, again, seems genuinely scared out of his mind at the economy right now.  (No wonder.  Bush is cynical and corrupt, but he's not completely stupid.  He knows we're in deep shit.)  He seems to simply want a bill, even if it means conceding every key point to the Dems, and I'm guessing he's about ready to strangle McCain by now for all the dicking around.

The Dems, of course, want to pass something akin to Dodd's bill, and the only question now is on the bankruptcy rules that the progressives want reformed.  Obama sounds like he's going to move to support the bankruptcy provisions, thus allowing him to either get a better bill or vote Nay and cut off McCain.

That's where we're at.

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Thu Sep 25th, 2008 at 04:24:06 PM EST
[ Parent ]
the unpopular rescue plan.

Those words mean NOTHING to them, do they?!  I wonder if his god talked to 43 tonight, or if it had to go through chainy.


Our knowledge has surpassed our wisdom. -Charu Saxena.

by metavision on Thu Sep 25th, 2008 at 04:12:22 PM EST
[ Parent ]

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