Bailout deal reached

[BroncoInferno]

http://news.yahoo.com/s/ap/20080925/...ncial_meltdown

Lawmakers: Financial bailout agreement reached

By JULIE HIRSCHFELD DAVIS, Associated Press Writers

WASHINGTON - Warned of a possible financial panic, key Republicans and Democrats reported agreement in principle Thursday on a $700 billion bailout of the financial industry and said they would present it to the Bush administration in hopes of a vote within days.

Emerging from a two-hour negotiating session, Sen. Chris Dodd, D-Conn., the Banking Committee chairman said, "We are very confident that we can act expeditiously."

"I now expect that we will indeed have a plan that can pass the House, pass the Senate (and) be signed by the president," said Sen. Bob Bennett, R-Utah.

The bipartisan consensus on the general direction of the legislation was reported just hours before President Bush was to host presidential contenders Barack Obama and John McCain and congressional leaders at the White House for discussions on how to clear obstacles to the unpopular rescue plan.

Tony Fratto, the White House deputy press secretary said the announcement was "a good sign that progress is being made."

"We'll want to hear from (Treasury) Secretary (Henry) Paulson, and take a look at the details. We look forward to a good discussion at the meeting this afternoon," he said.

On Wall Street, financial markets grew more upbeat as the Dow Jones industrial average at times rose more than 300 points.

Key lawmakers in Washington said at midday that few difficulties actually remained, although no details of their accord were immediately available.

"There really isn't much of a deadlock to break," said Rep. Barney Frank, D-Mass, chairman of the House Financial Services Committee.

But there were fresh signs of trouble in the House Republican Caucus. A group of GOP lawmakers circulated an alternative designed to attract private capital back into the credit markets with less government intrusion.

Under the proposal, the government would provide insurance to companies that agree to buy frozen assets, rather than purchase them directly as envisioned under the administration's plan. The firms would have to pay insurance premiums to the Treasury Department for the coverage.

"The taxpayers haven't done anything wrong," said Rep Eric Cantor, R-Va., adding that rather than require them to bear the cost of the bailout, the alternative "pretty much puts the burden on Wall Street over time."

Rep. John A. Boehner, R-Ohio, the minority leader, was huddling with McCain on the rescue. Earlier, asked whether the GOP presidential nominee could corral restive Republicans to support the plan, Boehner said, "Who knows?"

And Rep. Spencer Bachus of Alabama, the only House Republican in the bargaining meeting, did not directly say he agreed with the other lawmakers who emerged describing an imminent deal.

"There was progress today," said Bachus, the senior Republican on the Financial Services panel.

Bush told the nation in a televised address Wednesday night that passage of the package his administration has proposed is urgently needed to calm the markets and restore confidence in the reeling financial system. His top spokeswoman, Dana Perino, had told reporters earlier Thursday that "significant progress" was being made.

House Speaker Nancy Pelosi, D-Calif., said Bush's agreement with Democrats on limiting pay for executives of bailed out financial institutions and giving taxpayers an equity stake in the companies cleared a significant hurdle.

The core of the plan envisions the government buying up sour assets of shaky financial firms in a bid to keep them from going under and to stave off a potentially severe recession.

It was not yet clear how lawmakers had resolved lingering differences over how to phase in the eye-popping cost — a measure demanded by Democrats and some Republicans who want stronger congressional control over the bailout — without spooking markets. A plan to let the government take an ownership stake in troubled companies as part of the rescue, rather than just buying bad debt, also was a topic of intense negotiation.

Bush acknowledged Wednesday night that the bailout would be a "tough vote" for lawmakers. But he said failing to approve it would risk dire consequences for the economy and most Americans.

"Without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold," Bush said as he worked to resurrect the unpopular bailout package. "Our entire economy is in danger."

Obama and McCain called for a bipartisan effort to deal with the crisis, little more than five weeks before national elections in which the economy has emerged as the dominant theme.

Presidential politics intruded, nonetheless, when McCain on Wednesday asked Obama to agree to delay their first debate, scheduled for Friday, to deal with the meltdown. Obama said the debate should go ahead.

[BroncoInferno]

Originally Posted by BroncoInferno

Presidential politics intruded, nonetheless, when McCain on Wednesday asked Obama to agree to delay their first debate, scheduled for Friday, to deal with the meltdown. Obama said the debate should go ahead.

Now there's no excuse for McCain not to debate Obama tomorrow.

[Rigs11]

Originally Posted by BroncoInferno

Now there's no excuse for McCain not to debate Obama tomorrow.

he gambled and lost

[baja]

I think the politicians are passing into law something they can not fully understand because there has not been sufficient time to study the consequences of the sweeping agreement. This is much like the Patriot Act that was crammed down our throats pushed by FEAR. Same race different horse

[baja]

I got a real bad feeling about this bail out.

[Hotrod]

Originally Posted by Rigs11

he gambled and lost

He would have been there either way.

[Hotrod]

Originally Posted by baja

I got a real bad feeling about this bail out.

It sounds much to much like "fall out" to me.

[Dudeskey]

Originally Posted by baja

I got a real bad feeling about this bail out.

Me too...™

[BroncoInferno]

Originally Posted by Hotrod

He would have been there either way.

Oh, please. It was a cynical political move all the way. After watching McCain flip-flop on issue after issue the last few years in order to position himself to be President and after witnessing the verifiable, outright lies his campaign has been perpetrating, anyone who believes otherwise is a sap.

[Hotrod]

Originally Posted by BroncoInferno

Oh, please. It was a cynical political move all the way. After watching McCain flip-flop on issue after issue the last few years in order to position himself to be President and after witnessing the verifiable, outright lies his campaign has been perpetrating, anyone who believes otherwise is a sap.

It has nothing to do with any of that. It has to do with the fact there is no way he could not show up at the debate. I'm not posting that opinon because I support him but because anyone with any sense at all knows he would be done if he failed to show.

[Garcia Bronco]

So McCain said he was going to come down there and kick some ass, and they got it done. Nice work McCain.

[BroncoInferno]

Originally Posted by Hotrod

It has nothing to do with any of that. It has to do with the fact there is no way he could not show up at the debate. I'm not posting that opinon because I support him but because anyone with any sense at all knows he would be done if he failed to show.

Sorry, I misunderstood what you were saying. I thought you were saying that he would have gone to "help out" in Washington anyway. My apologies.

[Hotrod]

Originally Posted by BroncoInferno

Sorry, I misunderstood what you were saying. I thought you were saying that he would have gone to "help out" in Washington anyway. My apologies.

No problems,

To be honest as a republican his dog & pony show the last 2 days is rather sad to watch IMHO.

[kappys]

Nothing like more socialism for the rich. They've finally started to treat the US government the same way they treat 3rd world governments. I suppose it was only a matter of time.

[Garcia Bronco]

Originally Posted by Hotrod

No problems,

To be honest as a republican his dog & pony show the last 2 days is rather sad to watch IMHO.

Sad and Terrible

[alkemical]

Originally Posted by BroncoInferno

http://news.yahoo.com/s/ap/20080925/...ncial_meltdown

Lawmakers: Financial bailout agreement reached

By JULIE HIRSCHFELD DAVIS, Associated Press Writers

WASHINGTON - Warned of a possible financial panic, key Republicans and Democrats reported agreement in principle Thursday on a $700 billion bailout of the financial industry and said they would present it to the Bush administration in hopes of a vote within days.

Emerging from a two-hour negotiating session, Sen. Chris Dodd, D-Conn., the Banking Committee chairman said, "We are very confident that we can act expeditiously."

"I now expect that we will indeed have a plan that can pass the House, pass the Senate (and) be signed by the president," said Sen. Bob Bennett, R-Utah.

The bipartisan consensus on the general direction of the legislation was reported just hours before President Bush was to host presidential contenders Barack Obama and John McCain and congressional leaders at the White House for discussions on how to clear obstacles to the unpopular rescue plan.

Tony Fratto, the White House deputy press secretary said the announcement was "a good sign that progress is being made."

"We'll want to hear from (Treasury) Secretary (Henry) Paulson, and take a look at the details. We look forward to a good discussion at the meeting this afternoon," he said.

On Wall Street, financial markets grew more upbeat as the Dow Jones industrial average at times rose more than 300 points.

Key lawmakers in Washington said at midday that few difficulties actually remained, although no details of their accord were immediately available.

"There really isn't much of a deadlock to break," said Rep. Barney Frank, D-Mass, chairman of the House Financial Services Committee.

But there were fresh signs of trouble in the House Republican Caucus. A group of GOP lawmakers circulated an alternative designed to attract private capital back into the credit markets with less government intrusion.

Under the proposal, the government would provide insurance to companies that agree to buy frozen assets, rather than purchase them directly as envisioned under the administration's plan. The firms would have to pay insurance premiums to the Treasury Department for the coverage.

"The taxpayers haven't done anything wrong," said Rep Eric Cantor, R-Va., adding that rather than require them to bear the cost of the bailout, the alternative "pretty much puts the burden on Wall Street over time."

Rep. John A. Boehner, R-Ohio, the minority leader, was huddling with McCain on the rescue. Earlier, asked whether the GOP presidential nominee could corral restive Republicans to support the plan, Boehner said, "Who knows?"

And Rep. Spencer Bachus of Alabama, the only House Republican in the bargaining meeting, did not directly say he agreed with the other lawmakers who emerged describing an imminent deal.

"There was progress today," said Bachus, the senior Republican on the Financial Services panel.

Bush told the nation in a televised address Wednesday night that passage of the package his administration has proposed is urgently needed to calm the markets and restore confidence in the reeling financial system. His top spokeswoman, Dana Perino, had told reporters earlier Thursday that "significant progress" was being made.

House Speaker Nancy Pelosi, D-Calif., said Bush's agreement with Democrats on limiting pay for executives of bailed out financial institutions and giving taxpayers an equity stake in the companies cleared a significant hurdle.

The core of the plan envisions the government buying up sour assets of shaky financial firms in a bid to keep them from going under and to stave off a potentially severe recession.

It was not yet clear how lawmakers had resolved lingering differences over how to phase in the eye-popping cost — a measure demanded by Democrats and some Republicans who want stronger congressional control over the bailout — without spooking markets. A plan to let the government take an ownership stake in troubled companies as part of the rescue, rather than just buying bad debt, also was a topic of intense negotiation.

Bush acknowledged Wednesday night that the bailout would be a "tough vote" for lawmakers. But he said failing to approve it would risk dire consequences for the economy and most Americans.

"Without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold," Bush said as he worked to resurrect the unpopular bailout package. "Our entire economy is in danger."

Obama and McCain called for a bipartisan effort to deal with the crisis, little more than five weeks before national elections in which the economy has emerged as the dominant theme.

Presidential politics intruded, nonetheless, when McCain on Wednesday asked Obama to agree to delay their first debate, scheduled for Friday, to deal with the meltdown. Obama said the debate should go ahead.

[Dudeskey]

...............

[bronco militia]

[Hotrod]

Originally Posted by bronco militia

[baja]

Originally Posted by bronco militia

Excellent

[Rohirrim]

Originally Posted by Garcia Bronco

So McCain said he was going to come down there and kick some ass, and they got it done. Nice work McCain.

Turn this water into wine!

[frerottenextelway]

Originally Posted by Garcia Bronco

So McCain said he was going to come down there and kick some ass, and they got it done. Nice work McCain.

More like there was a deal done, McCain came to town and threw politics into the mix and the deal may collapse.

[L.A. BRONCOS FAN]

So no word on whether Commandant Paulson got his wish and the agreement is non-reviewable by any court or legislative body?

In any case, if there was ever any question about who really runs America, then not anymore.

The puppet masters have stepped out of the shadows.

[L.A. BRONCOS FAN]

Originally Posted by Hotrod

It has nothing to do with any of that. It has to do with the fact there is no way he could not show up at the debate. I'm not posting that opinon because I support him but because anyone with any sense at all knows he would be done if he failed to show.

• McCain campaign will not commit to debate

http://www.yahoo.com/s/959766

[ak1971]

Originally Posted by TheDave

This nothing more than a political football at this point. McCains recent Hail Mary pass is still in the air... let's see where it lands.

Here is the latest agreement:

The full text follows:

Agreement on Principles


1. Taxpayer Protection

a. Requires Treasury Secretary to set standards to prevent excessive or inappropriate executive compensation for participating companies

b. To minimize risk to the American taxpayer, requires that any transaction include equity sharing

c. Requires most profits to be used to reduce the national debt

2. Oversight and Transparency

a. Treasury Secretary is prohibited from acting in an arbitrary or capricious manner or in any way that is inconsistent with existing law

b. Establishes strong oversight board with cease and desist authority

c. Requires program transparency and public accountability through regular, detailed reports to Congress disclosing exercise of the Treasury Secretary’s authority

d. Establishes an independent Inspector General to monitor the use of the Treasury Secretary’s authority

e. Requires GAO audits to ensure proper use of funds, appropriate internal controls, and to prevent waste, fraud, and abuse

3. Homeownership Preservation

a. Maximize and coordinate efforts to modify mortgages for homeowners at risk of foreclosure

b. Requires loan modifications for mortgages owned or controlled by the Federal Government

c. Directs a percentage of future profits to the Affordable Housing Fund and the Capital Magnet Fund to meet America’s housing needs

4. Funding Authority

a. Treasury Secretary’s request for $700 billion is authorized, with $250 billion available immediately and an additional $100 billion released upon his or her certification that funds are needed

b. final $350 billion is subject to a Congressional joint resolution of disapproval