Full text of the bailout bill (subject to revision)

The House Financial Services Committee has released a draft of the financial-system bailout bill -- all 110 pages.

Go here (it's in PDF format).

Just keep in mind that many of the details of the bill still are under discussion, and may be changed before the final version is sent to the House for a vote (expected on Monday).

You won't find the word "bailout" in the bill's title, of course. The working title is the "Emergency Economic Stabilization Act of 2008."

Comments

[david moore]

Committing moral bankruptcy
While attempting to stave off financial bankruptcy, congress, now finds itself on the verge of committing moral bankruptcy. The idea that the Federal Government could make any profit is morally default. Who would the Federal Government make a profit off of. How could it be the same people who gave them the money. Beside the immorality, the sheer lunacy of this situation is Un-conscionable, given, there is a moral solution. Now, it sounds that the Federal Government want to loan taxpayers money to Wall St. so Wall St. can then use the money, to make money, off of, ultimately (the same folks who gave them the money) the taxpayers, and then take a cut, for doing so (making a profit). Since, the Federal Housing Authority must no longer exist, morally, what needs to happen, is the recreation of a new FHA, which will convert the OLD Federal Housing Authority, into, the NEW Foreclosed Housing Authority. Next, congress will need to legislate, the authority, the funds, and a mandate which states, "All financial entities, which operate, in American home markets, shall sell all home properties, with a greater loan to value rate, to the new FHA, at the days current fair market value". This will guarantee that the American taxpayers will be receiving true current value of out-laid money, while preventing a "waiting game" to be played by the financial entities, which operate, in American home markets, where they could cherry pick which bad loans, they are ready to give up on now, and those, they have not, quite, given up on, yet. (No ambiguities) A complete purge of the Wall St. financial markets toxic property debt. A new beginning for Wall St.. and Americans. This, will allow Wall St., to sell upside down properties (at a lost for them, allowing Wall St. to morally pay for its own mistakes) while, giving them (Wall St.), new revenues to re-capitalize with. Thus, this will also create a pool of housing, which, can then be fairly and morally sold with 30 yr. Notes, to low income families, at the true fair market value, of the day (without profit). Also, mandate to the new FHA, to give any family, currently in foreclosure, first right of refusal, to a payoff (at the days true fair market value of the Note) to whomever currently possesses the property TITLE, then issue, a new 30 yr. Note on that same particular property.
Now, here is a moral reckoning of reality.
- Rich people, will see their home values drop.
- Poor people, currently have no property value.
- Poor people, will now be morally able to afford housing.
- Banks will lose money, but they will have money.
- There will be a new, re-distribution of wealth (towards the middle-class) in America.
In addition, in the grandest scheme of all, by righting this boat we are in, this can be an opportunity, for America, as a whole, to turn a negative, into a positive.

[Concerned Consumers]

So far this year, our government, Democrats and Republicans, have approved the spending of over $1 trillion dollars ($1,014,000,000,000) of our hard earned money to bailout corporations and banks that screwed us over in the first place. If you think your presidential candidate is immune from the graft and will make a change, think again. Obama and McCain’s list of financial contributors should make you think twice, see http://www.fec.gov/DisclosureSearch. Regardless of who you vote for, let us strive to hold our elected officials accountable for their promises, accountable for their actions and accountable for our hard earned money.

Earlier this year, our government guaranteed $29 billion dollars ($29,000,000,000) to support the bailout of Bear Stearns. Our government then spent $200 billion dollars ($200,000,000,000) to sort out financial problems with mortgage lenders Fannie Mae and Freddie Mac. Recently, our government spent/lent $85 billion dollars ($85,000,000,000) to American International Group.

Now, our politicians want to spend $700 billion dollars ($700,000,000,000) of our tax money to bailout American and non-American financial institutions or businesses, that did not complain when they were making huge profits off of high-risk mortgage loans. This bailout is another method for wealthy Republicans and Democrats to bailout their wealthy friends.

We need to watch those pushing for the $700 billion dollar bailout like Treasury Secretary Henry Paulson. When Paulson was Goldman Sachs’ chief, Paulson himself received an $18.7 million cash bonus for the first half of 2006, and in 2005 he was the highest paid chief executive officer on Wall Street, reaping $38.3 million in salary, stock and options. Paulson also accumulated 3.23 million shares of Goldman's common stock worth $492 million, plus restricted shares worth $75.2 million and options to purchase 680,474 shares, according to a Goldman regulatory filing on July 2, 2006. Paulson wasn't required to pay a 20 percent tax penalty on some of his compensation from Goldman under an Internal Revenue Service rule that waived the tax on executives forced to sell stock to comply with government ethics rules.

[zelduh]

It would have been better - and so much cheaper - to have given every single living American one million dollars (this totals less than one-half of the bailout cost), rather than giving these bankers such money.

[citizen]

is it just me or is the .pdf file not viewable when downloaded?

[Dennis Turner]

One year before Martha Stewart was jailed I had a bumper sticker that said "Jail Martha; Redecorate Wall Street"

Well Martha eventually paid the price now it is time to redecorate!
Many did not like my sticker but if only they had listened!

[Ricardo Frustockl]

Two Words "Put Options" take the money for the bail out and buy put options on failing companies and take the money they make and buy back the gold they sold! Back to the gold standard!! Simple

[Zee Meyer]

The bill identifies “Troubled Assets” =residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress. This basically means we are absorbing the bad debts, bad decisions of the big banks who knew what they were doing. This is unconstitutional…Paulson is a Wall Street insider and does not have the best interests of the taxpayers at heart. Restore credit, so Americans can borrow more money they can’t repay while the banks continue to collect interest and penalties.

Dodd, Pelosi, and Frank act like they should receive an Academy Award for this rushed bill that will beneft Wall Street. The public has been lied to regarding who the bill will benefit; it is not mainly homeowners…Also, the public is not only worried about Golden Parachutes of the few CEO’s, but also the huge commissions, bonuses and salaries of many of the employees…not just the CEOs…the American public has had it, is becoming informed and is tired of being lied to. What happens if the banks aren’t around in five years after they’ve already received millions of dollars. Paulson has a conflict of interest as would Bloomberg who has been mentioned as a member of the oversight committee. Has congress asked for input from any of the more than 200 top economists from our major universities who are against this bill and say it will not work. NO bailout and no academy award for not doing your jobs for many years. Stop blaming each other…the culprits are all of the members of Congress.

[ScreenName]

This new deal claims that the oversight will consist of the Federal Reserve chairman, the Securities and Exchange Commission chairman, the Federal Home Finance Agency director and the Housing and Urban Development secretary. Some oversight that is!

I say we end the Federal Reserve that is not, I repeat, NOT a under Government control. It's a private bank owned by some of the richest people in the world. And do you think they are looking out for your interests?

Support HR 2755 to end the Fed; call your "representatives" and demand an end to the "money changers" controlling our country.

Listen to Murray Rothbard's "Case Against the Fed" at http://mises.org/media.aspx?action=category&ID=114 if you want to start to understand what's truly going on.

Wake up, people! It's almost too late...

[Use a calculator!]

A little mis-information to clear up:

zelduh said: "It would have been better - and so much cheaper - to have given every single living American one million dollars (this totals less than one-half of the bailout cost), rather than giving these bankers such money."

Bad math, zelduh. $700 billion divided by 300 million Americans is $2,333.33 per person. That's a long way off from the million dollars you have suggested. I'm not saying $2,333 isn't a lot of money, I just saying you should probably check with a calculator before you post stuff that's not even close to being true.

[Ooh Baby]

Is there a maximum per mortgage or aggregate per investor? (ie: are we bailing out one investor with several million dollar mortgages?)

Is there an Owner-Occupied rule? (ie: do the properties in question have to be owner occupied or are the taxpayers bailing out investors who have nothing to lose?)

Will a lien be placed on the property wherein the property cannot be sold until the lien is made whole, and if it cannot be made whole, will the investor have to rid themselves of other assets before selling any subsidized properties at a loss to the taxpayers?

There is a 7-10 year waiting list for HUD senior housing in Westfield NJ. What will this plan do to help people who are not even able to get on a list?

The section 8 housing is also closed - what will be done to help people who cannot even get on a list?

Disabled people are told to go to welfare hotels, no housing help is available currently. Will anything here help this situation?

There is a 5 year look back window for anyone trying to get Medicaid. Is there a similar plan to recoup assets and bonuses from the companies the taxpayers are bailing out?

I hope someone is listening. I know there are good people out there!

[roxsf]

zelduh if they split up the money between all americans it would be 2,333 dollars each, not over a million dollars each. Sad but true.

[Jame Lee]

i vote against a bailout. Just let wall street fix its problem.!!!!

[chuck scherl]

This is a sad day for the United States. It is the day we became a socialist country. IF there are eventually any profits from this bailout, we will NEVER see it. I suggest that the countries name be changed to the Socialist States of America.

[Carl Peter Klapper]

There IS an alternative. We need to replace the failed Federal Reserve with the Third Bank of the United States, have it take over the administration of all mortgages and CMOs, convert all existing mortgages to Adjustable Equity Mortgages (AEMs) so that total equity equals current market value, with principal and payment amounts proportionately adjusted, and not spend a dime on bad loans.

[Lewis Field]

Thank you Conservative Republicans! You guys are so cool. Let the chips fall where they may and let the market take its course. Fight those thieves (Pelosi and her bribe-stained, corrupt crowd) to the bitter end.

[BRENDA SMITH]

Why would we be bailing out non-Ameican business? I totally vote against the bill. And I think Palin should make Palosi her first target to be investigated for corruption.

[db]

No bailout.
Let those with the responsbility for getting us into this mess take the responsibility for cleaning it up.
I don't hear any offers from the rich bankers to dig into their own pockets to save themselves.

No, instead they want us to pay.

I have no debt and don't even own a credit card. How DARE they make out a loan application in my name and then increase my taxes to make me pay?

My industry is not protected and even though I have nothing to do with this I could end up unemployed. That makes me sick to the stomach.

Let the banks fail, and the bankers should have their own houses repossessed and have to sign up for welfare, like everything else.

End socialism for the rich now.

[hecubar]

Just delete the capital gains tax and the corporate tax for three years.

[bob creighton]

NAFTA have anything to do with our economic problems????

[Average Guy]

This is my take on the situation. The average person is NOT a person with hundreds of thousands invested in stocks and mutual funds. The average person own one house and lives with roughly 5-figures stashed in a savings account. We are bailing out RICH people with money invested in these institutions. The companies that made these loans took a chance at making HUGE profits, and if they made those profits WE wouldn't see it so why when they take a HUGE loss do we have to fit the bill? This sets a horrible example. I say let these companies lose asset valve and be forced to sell off these foreclosed properties for pennies on the dollar. Dammit! THIS WILL GIVE AVERAGE AMERICANS THAT HAVE BEEN RESPONSIBLE WITH THEIR MONEY AND LOAN OBLIGATIONS THE OPPORTUNITY TO INVEST IN THE REAL-ESTATE MARKET AND RECEIVE HUGE GAINS OVER THE NEXT 10-15 YEARS. because the markets WILL recover and go back up eventually. The government is just looking out for their rich friends. It's GREED! They don't want Americans to rise to riches off their bad mistakes. I say if this bill passes we seriously think about picking up our guns and FORCE them to listen! We have had 2 revolutions in this country's short history already (Revolution and Civil War) and it may be time for another VERY VERY soon.

[Does America realize this BAILOUTt is costing EACH OF US $9322.00?]

The reality of the numbers involved.

The proposed bailout for the fat cat banks on Wall St. was $700,000,000,000 (i.e. $700 Billion)
http://en.wikipedia.org/wiki/Bailout_of_U.S._financial_system_(2008)

The number of owner occupied houses in America (according to the latest Census info) is 75,086,485
http://factfinder.census.gov/servlet/STTable?_bm=y&-geo_id=01000US&-qr_n...

Total amount of tax dollars that would be donated to the big corporate banking giants PER OWNER OCCUPIED HOUSEHOLD
$700.000.000,000 divided by 75,086,485

$9322.59 PER household

I truly think that taxpayer money would be better off back in the hands of the taxpayers INSTEAD of propping up huge corporations. All of these people facing forclosure could to a hell of alot with nearly $10,000

IF YOU BUMS CAN AFFORD TO GIVE $9000 OF MY MONEY TO CORPORATE AMERICA, THEN I DEMAND A TAX CUT.

YOU OBVIOUSLY DO NOT NEED MY TAXES IF YOU CAN GIVE IT AWAY AS A REWARD TO THE STUPID.

[tax paying proerty owner]

How about the Paul Welstone and Pete Domenici Act Sec. 511 attached to this bill,Sec. 505 Farm Machinery and Equipment treated as 5 Year Property,Sec. 504 Income Averaging for Amounts Received in Connection With The EXXON VALDEZ, Here is a good one, sec. 503 EXEMPTION FROM EXCISE TAX FOR CERTAIN WOODEN ARROWS DESIGNED FOR USE BY CHILDREN!!!!!!, Sec. 502 Provisions for Film and Television, Sec. 325 Duty Suspension on WOOL, THRU 2014!!!!!!!!!, Sec. 322 Tax Insentives for Invesrment in The District of Columbia, NASCAR Sec. 317 Seven Year Coct Recovery for Race Tracks, Sec316 Railroad Track Maintenance, Sec. 308 Increase in Limit on Cover of RUM EXCISE TAX TO PUERTO AND THE VIRGIN ISLANDS, Sec. 405 Increase in OIL SPILL FUND, Sec 211 Transportation FRINGE BENIFIT TO BICYCLE COMMUTERS!!!!!!!, Sec. 205 CREDIT FOR ELECTRIC CAR PLUG-INS,

I HOPE THEY RIDE THEIR BIKES, RUN INTO AN ELECTRIC CAR, BECAUSE THEY HAVE WOOL HAT FELL OVER THEIR EYES AND FALL ON A WOODEN ARROW!!!!!!!!!!!!!!!!!!!!

[John Gilbert]

NO !!! BAIL OUT !!! IS ANYONE REALY LISTENING TO THE AMERICAN PEOPLE?.MOST AMERICANS ARE HARD WORKING PEOPLE WITH GOOD COMMON SENCE. WE DESERVE OUR VOICE TO BE HEARD.WE DON'T WANT TO PAY FOR WALL STREETS FAILURES.....SO WHAT IF A FEW BANKS CLOSE, THEIRS ONE OR TWO ON EVERY CORNER.THE ONLY PEOPLE TO BENEFIT WILL BE THE RICH.

[Rebecca Murray]

Why do the taxpayers have to pay the price of mismanaged banking institutions? I think the Federal Government should bail out all who lost their homes, jobs etc. Don't they deserve to get back on their feet and prosper too?

[don beverly jr.]

How do you apply for any of this bail out money. I own a USA company not on the stock market, but my jobs stay here in the USA. We need half a million to ensure we stay in business. Our total yearly sales are 2.5 million, our product stays in the US. We employee 45 Americans. Our profit margin is only 2 to 3% need I say HARD TIMES>>>>> I dont know how we made it so far this year. future not to bright. we've been here 26 years maybe not 27,
HELP.................................................................................................................
Cry for help for bluecollar workers the back bone of this country are is time a changeing the people who move the money around in paper work the ones who make all the money not the ones of out here who really work for a living. Heres a good plan give every AMERICAN man/woman family unit that makes less than $100,000.00 per year combined. A "Bail Out" of $100,000.00
That would pay off alot of mortgages and new cars pay for health insurance
college for the kids. Hell maybe even go on a vacation which alot this year had no choice but to forget.

[Disgruntled Antagonist against Shady Sh*T]

Ok Where do I start??? Nice bailout lol we just paid for AIG to throw a party for over $400,000. Fannie Mae and Freddie Mac paid to stop a regulation Bill by lobbying John Mccain and other republicans into not casting a vote...

[Carl Peter Klapper]

I have had enough of these shenanigans, this theft of the people's money and the operation of Ponzi schemes in which Congress has made the people unwitting and unwilling participants.

I am running for United States Senator from New Jersey as a write-in candidate in order to create a new financial system for the people which eliminates leverage and speculation, provides for their necessities and pays for the operation of government.

Carl Peter Klapper