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U.S. Senate Passes Bailout Plan

By David Badertscher, PLL

<p><font size="2">The U.S. Senate endorsed the $700 million bailout plan by a margin of 74 to 25 in favor. Here are some of the highlights of the Senate Approved Plan as reported in the October 2, 2008 <em>Wall Street Journal</em> (Page A3):</font></p> <p><font size="2">"Like the deal rejected by the House, the Senate bill includes:</font></p> <p><font size="2"><strong>$700 BILLION FOR BAD ASSETS</strong>: $250 billion immediately, $100 billion on Treasury Secretary's request $350 billion subject to congressional joint resolution.</font></p> <p><font size="2"><strong>EQUITY STAKES</strong>: Participating companies must provide non-voting warrants to Treasury to cover losses, administrative costs and any profits they make.</font></p> <p><font size="2"><strong>EXECUTIVE COMPENSATION</strong>: Treasury secretary to set limits on executive compensation in participating companiesl</font></p> <p><font size="2"><strong>FORECLOSURE PREVENTION</strong>: More efforts to modify risky mortgages, compulsory modification for loans owned and controlled by federal agencies.</font></p> <p><font size="2"><strong>OVERSIGHT BOARDS</strong>: Creates board with 'cease and desist' authority, establishes special Inspector General.</font></p> <p><font size="2">But it also has some provisions not considered by the House:</font></p> <p><font size="2"><strong>MARKET-MARKET</strong>: SEC has to study mark-to-market accounting standards and their effects on balance sheets and quality of financial information.</font></p> <p><font size="2"><strong>FDIC INSURANCE</strong>: Raises federal deposit insurance limits from $100,000 to $250,000 until Dec. 31, 2009. "</font></p>

Full post as published by New York Supreme Court Criminal Term Library on October 02, 2008 (boomark / email).