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September 22, 2008Bailout Counter-Plan
Politico is reporting on a counter-plan offered by Sen. and Banking Committee Chairman Chris Dodd , which would add the following provisions:
Authority for bankruptcy judges to restructure mortgages for
homeowners facing foreclosure. This was considered a poison pill in a
housing bill that passed Congress earlier this summer, but it has gained
much more currency now that Washington wants to bail out Wall Street.
A provision that would require the Treasury to take a 65
percent portion of 20 percent any profits it makes from the newly
purchased assets and put it into the federal government's HOPE program,
an affordable housing program.
An oversight board that not only includes the chairman
of the Federal Reserve and the SEC, but congressionally appointed,
Limits on executive compensation. This is a major
stumbling point for Paulson in his negotiations with Congress, but
cracking down on Wall Street executive salaries will be a major selling
point for lawmakers. Dodd and Frank have put in place what's known as a
"claw back" provision aimed at revoking compensation that executives
received based on fraudulent claims.
An independent inspector general to investigate the Treasury asset program, appointed by the president.
Those sound eminently sensible to me. I'd like to see more done for regular folks.
Perhaps the best suggestion I have read so far is to require CEOs and
CFOs of these corporations to attend a credit counseling workshop as
part of their bailout from the government. Since, that is required of
any joe/jane claiming bankruptcy, why not require it of these CEOs?