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Thread: Bailout deal outline reached

  1. #1

    Bailout deal outline reached

    Just fyi...


    [QUOTE]Lawmakers Agree on Outline of Bailout

    By DAVID M. HERSZENHORN
    WASHINGTON — House and Senate negotiators from both parties said Thursday that they had reached general agreement to move forward with the Bush administration’s proposed $700 billion rescue effort of the nation’s financial system.

    Emerging from a nearly three-hour meeting in the Capitol, Republicans and Democrats said they would continue working through the day to complete the legislative language and would begin final negotiations with the Treasury.

    It was unclear if a final draft would be ready by 3:55 p.m. when Congressional leaders are scheduled to meet at the White House with President Bush and the two presidential candidates, Senator John McCain, Republican of Arizona, and Senator Barack Obama, Democrat of Illinois.

    [B]But lawmakers in both parties said that few substantive differences and no major obstacles remained. They said the bill would authorize the full $700 billion requested by President Bush, but that Congress was intent on disbursing the money in installments.[/B]

    One plan under consideration would release $250 billion immediately, with another $100 billion available at the discretion of the president.

    [B]They also said that there would be limits on pay packages for executives whose firms seek assistance from the government and a mechanism for the government to be given an equity stake in some firms so that taxpayers have a chance to profit if the companies prosper in the months and years ahead.[/B]

    “I now expect we will indeed have a plan that can pass the House, pass the Senate, be signed by the president, and bring a sense of certainty to this crisis that is still roiling in the markets,” said Robert Bennett, Republican of Utah. “That is our primary responsibility, and I think we our now prepared to meet it.”

    And Mr. Bennett, one of the senior members of the banking committee, made a point of describing the meeting as free of political “posturing” in remarks that seemed aimed at Mr. McCain, who announced on Wednesday that he was suspending his campaign and returning to Washington to help secure a deal.

    “I appreciate very much my Republican colleagues who participated in the meeting and added tremendously,” Mr. Bennett said. “We focused on solving the problem, rather than posturing politically and it was one of the most productive sessions in that regard that I have participated in since I have been in the Senate.”

    On Wall Street, shares, which had opened higher, rose sharply on expectations of a rescue plan. The Dow Jones industrial average was up more than 290 points at midday.

    The meeting on Thursday morning, in an ornate conference room on the first floor of the Capitol, was convened by Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the banking committee, and Representative Barney Frank, Democrat of Massachusetts and chairman of the House Financial Services Committee.

    The news from Congressional leaders that they were in the final stages of reaching a deal stole some of the drama from the meeting scheduled at the White House in the afternoon.

    And some Democrats, who had complained on Wednesday that Mr. McCain was pulling a stunt by returning to Washington, said the White House visit was a distraction. But lawmakers agreed that Mr. Bush and the candidates could help build support for the bill.

    In a brief speech on the Senate floor, the majority leader, Harry Reid of Nevada, said he expected to be in session on Saturday to cast its first procedural votes on the bailout plan, in which the government plans to buy distressed debt from financial firms and stave off what President Bush warned could be a widespread economic collapse.

    Mr. Bush in a prime-time televised speech on Wednesday night appealed to the nation — and to reluctant lawmakers — to support the plan. And he asked Mr. McCain and Mr. Obama to meet him and Congressional leaders in a show of cooperation.

    After the overnight drafting efforts on both sides of Capitol Hill — with pizza on the House side, and Thai food in the Senate — Democratic officials said they had completed a unified draft of a bill. (Negotiations between the House and the Senate can be nearly as complicated as negotiations between Democrats and Republicans.)

    Sheryl Gay Stolberg contributed reporting[/QUOTE]

  2. #2
    guess they don't need Mccain in DC anymore

    see ya at the debate grandpa

    :abe:

  3. #3
    [QUOTE=bitonti;2772482]guess they don't need Mccain in DC anymore

    see ya at the debate grandpa

    :abe:[/QUOTE]

    Amazing how it got done before he even got back to DC. From the way he talked about it yesterday, it had no chance without his divine intervention.

  4. #4
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    [QUOTE=nuu faaola;2772487]Amazing how it got done before he even got back to DC. From the way he talked about it yesterday, it had no chance without his divine intervention.[/QUOTE]

    Don't think that wasn't a consideration, no way anyone wanted him to look like a savior, real or imagined.

  5. #5
    [QUOTE=jetswin;2772504]Don't think that wasn't a consideration, no way anyone wanted him to look like a savior, real or imagined.[/QUOTE]

    You're probably correct in that the Democrats were likely concerned about him picking up the ball at the goal line, carrying it in and celebrating as if he'd driven it down the field.

    Although what I think he would have preferred to do is to have the thing safely pass and to come out against it, hanging it on Bush and the Democrats. That was the Dems' worst-case scenario. Unfortunately for McCain, the GOP base revolted and he had to come out in favor of it to keep them in line, so he couldn't oppose it.

    (Obama made a similar contribution when he came out against including a stimulus package and a bankruptcy bill in the bailout, giving the dem leadership cover to concede on those prior demands.)

    In the end, Obama and McCain mostly did the right thing by mostly staying out of it and letting the negotiations go forward in a bipartisan fashion.

  6. #6
    This is the riskiest and dopeyest thing this administration has done yet.
    Give more money to people who have demonstrated they can't be trusted. My Father told me when I was little boy, "don't ever trust a banker because they don't trust each other":steamin:

  7. #7
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    So I'm a CEO and I now have the choice of participating and getting my compensation cut, or trying to go it alone? This is a counterintuitive incentive to encourage banks to sell assets. hopefully the boards push this.

  8. #8
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    great so the board fires the ceo and brings someone else in who will then see a huge bonus, right?

  9. #9
    The meeting on Thursday morning, in an ornate conference room on the first floor of the Capitol, was convened by Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the banking committee, and Representative Barney Frank, Democrat of Massachusetts and chairman of the House Financial Services Committee.

    The foxes in charge of the chickens.

  10. #10
    [QUOTE=bitonti;2772482]guess they don't need Mccain in DC anymore

    see ya at the debate grandpa

    :abe:[/QUOTE]

    Did Obama ever show up? Or was he to busy!

  11. #11
    [QUOTE=MnJetFan;2772616]Did Obama ever show up? Or was he to busy![/QUOTE]

    yeah he was too busy... kicking mccains wrinkly old ass in every poll in America

  12. #12
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    Apparently the public isn't buying into this bailout idea:

    [url]http://www.rasmussenreports.com/public_content/business/general_business/just_30_think_government_should_bail_out_the_markets[/url]

    Only 30% approve of it.

  13. #13
    [QUOTE=bitonti;2772622]yeah he was too busy... kicking mccains wrinkly old ass in every poll in America[/QUOT

    rather angry, aren't we?

  14. #14
    [QUOTE=VincenzoTestaverde;2772648]Apparently the public isn't buying into this bailout idea:

    [url]http://www.rasmussenreports.com/public_content/business/general_business/just_30_think_government_should_bail_out_the_markets[/url]

    Only 30% approve of it.[/QUOTE]

    The public doesn't understand spit about what's going on...& it's not their fault..the media spin is crazy. Without these funds I shudder at what would've happened to our finl system...most of Congress understands this, they just needed to complain for a few days to please their constituencies

  15. #15
    [QUOTE=Tucker134;2772668]The public doesn't understand spit about what's going on...& it's not their fault..the media spin is crazy. Without these funds I shudder at what would've happened to our finl system...most of Congress understands this, they just needed to complain for a few days to please their constituencies[/QUOTE]

    ah yes the tried and true "people are stupid" theory

    very popular in the Brooks Brothers changing rooms

    and in wide stance public mens rooms across the nation

  16. #16
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    [QUOTE=Tucker134;2772668]The public doesn't understand spit about what's going on...& it's not their fault..the media spin is crazy. Without these funds I shudder at what would've happened to our finl system...most of Congress understands this, they just needed to complain for a few days to please their constituencies[/QUOTE]

    I shudder at what would happen if McCain's economic guru Phil Gramm repealed a 1930's Depression era Banking regulation. The economic consequences would be disastrous. Merrill, Bear Sterns, Lehman Brothers would all go under.

    Oh wait, that's what's happening now.

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