The Bailout Deal: Take 2

Update (9/28/08, 7:15 a.m.) The National Review managed to grab it. Happy reading.

Update (9/28/08, 6:45 p.m.): The Washington Post has a summary of key parts of the bill here. I’m trying to link to actual text but Pelosi’s website is crashing from the demand!

Congress is again saying that they have the broad outlines of a deal. From CNBC:

The legislation would disburse the funds in tranches, limit “golden parachutes” for executives at companies participating in the program and set up an oversight board to supervise the program, which would be run the U.S. Treasury.

“We’ve been working very hard on this and we’ve made great progress toward a deal that will work and be effective in the marketplace and effective for all Americans,” Paulson said.

House Republicans, who had worried the program would put taxpayers on the hook, won a provision that would set up an insurance program for mortgage-backed securities.

In addition, the government will get stock warrants so taxpayers “can gain as companies recover and as the economy recovers,” said Democratic Sen. Kent Conrad of North Dakota. “That is very significant.”

It sounds like it’s the same as the bill that deeply unstable John McCain swooped in to scuttle, except it now has the House GOP insurance provision. We’ll see what exactly that means.

Paulson has apparently kept the pressure on (h/t Rod Dreher):

Officials close to Paulson are privately painting a far bleaker portrait of the fragility of the global economy than that advanced by President George W Bush in his televised address last week.

One Republican said that the message from government officials is that “the economy is dropping into the john.” He added: “We could see falls of 3,000 or 4,000 points on the Dow [the New York market that currently trades at around 11,000]. That could happen in just a couple of days.

“What’s being put around behind the scenes is that we’re looking at 1930s stuff. We’re looking at catastrophe, huge, amazing catastrophe. Everybody is extraordinarily scared. It’s going to be really, really nasty.”

Let’s hope John McCain doesn’t try to drop in to try to steal credit again.

Lastly, Citigroup execs are meeting with Wachovia today to discuss an acquistion.


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