For those of you that want to read the senates new screw job

[dkofos]

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008


http://banking.senate.gov/public/index.cfm?Fuseaction=Articles.Detail&Article_id=76b1aea4-39b8-404f-b3cd-f8b6c46e3b14&Month=10&Year=2008

[barbtries]

1. thank you

i'm trying to wade through it. so far thumbs down.

[JDPriestly]

2. Here are a few things I notice. You can use this to find something you might be interested in.

I read this really fast, so don't rely on my summary. Read the parts that interest you for yourself. Let me know what you think.

Section 101(c): The GAO supervises on site under Section 116 as does a more or less bipartisan congressional oversight committee under Section 125. I think this bill still gives the Secretary and president far too much personal power -- to contract and to hire employees and also too much leverage, power and direct control of the private portion of the economy. Congress should spell these things out so as to avoid hiring and contracting where there might even be the suggestion of a conflict of interest. There is no penalty if the Secretary and President just use this as a kind of political slush fund or even for punitive, vengeful, controlling mechanisms against people who do not support them politically, no real safeguards as I see it.

I fear thatthis is an assault on the integrity of our Constitution and system. It may catch and strangle what is left of our small business community. It looks like a bail out for the big guys that is going to hit little guys in business very hard. That is not a well informed opinion on my part. It's my sense of this and I might be wrong.

Does anyone know offhand whether the codes listed here include 401(K)s?

(8) protecting the retirement security of Ameri17
cans by purchasing troubled assets held by or on be18
half of an eligible retirement plan described in clause
19 (iii), (iv), (v), or (vi) of section 402(c)(8)(B) of the
20 Internal Revenue Code of 1986, except that such au21
thority shall not extend to any compensation ar22
rangements subject to section 409A of such Code;


I think the IRC Codes cover government employees and union trusts as well as employer trusts (not sure). Any ERISA and IRC experts? (This requires more reading/research than I have done.) 103(8) of the proposed bill.


The Financial Stability Oversight Board established in 104(a) includes only members of the president's cabinet. That's an invitation to Bush to use this whole thing for self-enrichment and political ends. Joke: this little clique is assigned the task of reporting fraud. Had they bothered to report fraud a long time ago, we would not be in this mess.

106 says (a) EXERCISE OF RIGHTS.—The Secretary may, at any time, exercise any rights received in connection with troubled assets purchased under this Act.
(b) MANAGEMENT OF TROUBLED ASSETS.—The Secretary shall have authority to manage troubled assets purchased under this Act, including revenues and portfolio risks therefrom.

Read further. Considering there is no duty to report to Congress until $50,000,000,000,000 is out the window, gone forever, that is a lot of power. Please note that is only part of the power this thing gives.

Section 108 instructs the Secretary to set the standards re conflicts of interest. Considering his ties to Goldman Sachs and the role of Goldman Sachs in this mess, don't you think he should make rules that disqualify him?

109(c) promises help for homeowners caught in this vise. Let's hope it works and works fairly for all.

Sec. 114 requires Paulson to disclose certain specific transactions to the public. Personally, I hope that will be done on the internet.

155(c) Unlimited discretion of Paulson re spending up to $350,000,000,000 on this program. Takes a joint expression of disapproval to limit the amount of funds used after $350,000,000,000. Need a strong majority by one party or the other in Congress to have any leverage with the Secretary on this one.

I read Section 119(b) to purport to protect the homeowners' rights to judicial and other remedies that they would have had. Usually, there are no relevant rights. I'm not sure what this will mean to those who might allege fraud against certain parties. I just don't know for sure. But affected homeowners need to read this and maybe talk to a lawyer or somebody just to see if this is relevant to you.

Sec. 121 establishes parameters of Inspector General's position.

Sec. 122 -- new national debt ceiling will be $11,315,000,000,000

Sec. 125 -- Congressional Oversight Panel -- involves some bipartisanship and that is good. This may be the best part of the whole thing, but these panels don't usually do that much in reality.

Section 126 -- stops fraudulent use of claims of FDIC insurance (I think).

Section 127 -- Any Federal financial regulatory agency shall cooperate with the Federal Bureau of Investigation and other law enforcement agencies investigating fraud,
misrepresentation, and malfeasance with respect to development, advertising, and sale of financial products.

Sec. 131 --

Sec. 132 -- gives Secretary authority to suspend mark to market authority

Sec. 136 -- is the insurance increase provision if you are interested in that

Title III has the tax provisions. Someone else can outline that please. I don't know eought to say anything about taxes.

Sec. 302 discusses executive compensation taxes refers to CEO, CFO or 3 highest paid executives. Not nearly enough of a limitation considering what a mess these people have gotten us into.

302(b) if I am reading this right concerns the Golden Parachutes provision

http://banking.senate.gov/public/_files/latestversionAYO08C32_xml.pdf