Outline of Congress draft

From a Reuters factbox, I thought it would be a good idea to include here where the house bailout draft stands so far.

Members of Congress on Friday were reviewing draft legislative
language agreed by negotiators for House and Senate Democrats and
Senate Republicans on modifications to the Bush administration’s $700
billion Wall Street bailout plan.
   

Following is a list of features in the 102-page draft legislation as
it stands so far. Lawmakers are continuing negotiations after House
Republicans revolted against the plan in favor of a private sector
financed mortgage insurance program.

 

– A Troubled Assets Relief Program (TARP) to purchase assets including mortgage-backed securities.

 

–$700 billion overall to be authorized in installments of $250
billion. That could be increased to $350 billion upon notification to
Congress by the president.

 

– Government to get warrants for equity in participating companies
as a way of protecting taxpayers and allowing them to benefit from any
profit gains from companies participating in the program.

 

– Foreclosure mitigation for homeowners facing economic distress.

 

-Restrictions on chief executive compensation at companies that participate.

 

– Financial Stability Oversight Board comprised of the chairmen of
the Federal Reserve, Securities and Exchange Commission and Federal
Deposit Insurance Corp, and two members appointed by Congress to
oversee activities of the program.

 

– Requires a government investigation into the causes behind the
current financial crisis. Report to be delivered to Congress by June
2009.

 

– Regular and detailed reports on transactions and other activities under the rescue program.

 

– Establishes a congressional oversight panel for the program that
would also submit a report on regulatory reform no later than January
20, 2009, the date a new president will take office.

 

– Directs that 20 percent of any future profits from the bailout
fund to the Affordable Housing Fund and the Capital Magnet Fund to meet
America’s housing needs.

 

– Requires federal financial regulatory agencies to cooperate with
Federal law enforcement authorities to investigate cases of fraud or
misrepresentation with respect to financial products.

 

– Investors who sold preferred stock in mortgage finance giants
Fannie Mae and Freddie Mac, between January 1, 2008 and before
September 7, 2008, to pay higher ordinary income taxes on any gains
rather than the lower capital gains tax rate. The government announced
the seizure of Fannie and Freddie on September 7.

 

(Editing by Tim Dobbyn)