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Junkie
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no I am right. Earlier today Republicans indicated that they were close to a deal and so did the democrats then McCain arrived and it all went away.
Google online for news stories and you will find lots like this:
http://www.theaustralian.news.com.au...-20142,00.html
Quote:
TOP US lawmakers from both parties have announced a "fundamental agreement" on a billion bailout of the US financial sector.
They predicted the measure would pass both chambers of Congress.
"I believe that we will pass this legislation before the markets open on Monday," Senator Bob Corker said.
The group of nine lawmakers declined to offer details of the agreement, but a Senate aide familiar with the agreement said it would immediately provide billion ($300 billion) to the Treasury Department to purchase soured assets from a wide range of financial institutions.
An additional billion would be available with a certification from President George W. Bush that the money was needed to deal with the financial crisis. The remaining billion would be subject to a vote by Congress, which would have to choose to rescind the funds.
The aide said the bipartisan group also reached an agreement on allowing the federal government to take warrants from firms that may sell their assets, as well as limits on executive compensation for firms that participate.
Lawmakers still need to determine whether the executive compensation restrictions apply to all of the firms that participate in the program or just those whose assets are directly purchased by the United States government.
House Financial Services Committee chairman Barney Frank, discussing the agreement on CNBC, said there would be "no golden parachutes" and there would be expanded proxy access for shareholders to vote on executive pay.
"A restriction (is) on the situation in which the CEO takes risk and it pays off, he gets a lot of money, but if it goes bust, he doesn't lose any money," Mr Frank said on CNBC.
"That's not just a matter of dollars, that's giving a perverse incentive, that's encouraging more risk than should be taken rationally."
The group also agreed on an oversight regime for the Treasury purchase program, the aide said, including the creation of an inspector general and two oversight bodies to watchdog the program.
One oversight board would be appointed by Congress, while the other would effectively be a presidential appointment and include representatives from the Federal Reserve, Securities and Exchange Commission, and Federal Deposit Insurance Corp, the aide said.
The agreement also requires that Treasury use any profits from the program to reduce the national debt, calls for the Government Accountability Office to audit the program, and requires regular reports to Congress on the use of the funds.
In an effort to reduce the number of foreclosures, the lawmakers also agreed that the new program should require loan modification for homeowners whose mortgages are owned or controlled by the federal government, according to a separate Senate staff member familiar with the negotiations. They also agreed that a portion of any future profits from the program, if there are any, should be directed to fund federal affordable housing programs.
Staff were expected to work furiously to draft the proposal, which lawmakers said they were optimistic could quickly pass Congress and be signed by Bush.
"I now expect that we will indeed have a plan that can pass the House, pass the Senate, be signed by the President, bring a sense of certainty to this crisis, that is so roiling in the markets," Senator Robert Bennett told reporters.
The White House welcomed the news.
"It's good that progress is being made," said White House spokesman Tony Fratto. "We'll want to hear from the congressional leaders and Secretary Paulson and take a look at the details," he added, referring to Treasury Secretary Henry Paulson.
Senate Banking Committee chairman Christopher Dodd said negotiators now plan to present their plan to rank-and-file members of their parties as well as the Bush administration.
He said lawmakers were prepared to "act expeditiously" to allow the federal government to buy billions of dollars in distressed assets from financial companies.
Mr Frank, Mr Dodd and other key lawmakers travelled to the White House to meet with Bush and the two main US presidential candidates - Senator John McCain and Senator Barack Obama, for an afternoon meeting to discuss the bailout plan. President George W. Bush, speaking ahead of the meeting, said he was hopeful "that we can reach an agreement very shortly".
The one major stumbling block remaining could be House Republicans, who were reluctant to endorse the Wall Street rescue plan and were pushing alternative proposals.
Senator Richard Shelby, the ranking Republican on the Senate Banking Committee, said lawmakers still haven't reached an agreement on financial bailout legislation.
Speaking with reporters after a meeting in the White House, Senator Shelby reiterated his opposition to the billion plan.
"I don't believe we have an agreement," Senator Shelby said. "There are still a lot of different opinions."
Asked about Mr McCain and Mr Obama's participation in the meeting, Senator Shelby said: "They were very courteous with each other, very respectful."
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There were multiple politicians on both sides that said a deal was close. And after McCain got in it was not.
-----Added 25/9/2008 at 09 : 28 : 53-----
Now it comes out the McCain is pushing his own plan which is basically less regulation and more corporate tax breaks. So we are going to reward their bad behavior? Isn't this like keeping the fox out of the hen house by adding more foxes?
Last edited by Rekna; 09-25-2008 at 05:35 PM..
Reason: Automerged Doublepost
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