Draft of the Treasury's Proposal for Toxic Debt

[Supercilious]

Re: Draft of the Treasury's Proposal for Toxic Debt

They have waited last minute and created a panic to pressure authorization given under duress conditions.
You will see more of the same power control measures as this crisis develops.
thanks for the draft!

You are right.

Maybe it's not because I forgot again to take my medication

http://www.itulip.com/forums/showpos...9&postcount=30

maybe I did take my medication... yeah ... I remember... it was a nice little red pill ;)

[D-Mack]

Re: Draft of the Treasury's Proposal for Toxic Debt

http://frwebgate2.access.gpo.gov/cgi...ction=retrieve

I think the debt limit is 10.6 now

[Comment: The current debt ceiling is $10.6 trillion, an amount that was raised from $9 trillion and change in July as part of a housing bill. Current U.S. GDP is about $13.5 trillion; so the new ceiling puts the maximum debt at well over 80% of GDP. Some economists worry about these things.]

http://www.huffingtonpost.com/howard..._b_128416.html

Max Keiser called it a slush fund for money laundering

http://www.youtube.com/watch?v=Ev4nt3RRivk

[GRG55]

Re: Draft of the Treasury's Proposal for Toxic Debt

..."The aim is for the government to buy the securities at a discount, hold onto them and then sell them for a profit.""..

BUY at a discount are you sure, I thought Ben wanted to pay full price to re capitalise the banks.

If they buy at a discount, the mark to market rules will force other banks down.

Anyways $700 BN only covers GS, MS, JPM, MER. After that lot they will need more monies !

Discount to what:

• mark-to-market?
• mark-to-model (who's model)?
• original book?
• hold-to-maturity?
• mark-to-myth?
• mark-to-bazooka?
• mark-to-Bennie (which may be same as hold to maturity)?
• government minions WAG?

[Slimprofits]

Re: Draft of the Treasury's Proposal for Toxic Debt

Text of Lawmakers’ Agreement on Principles

Congressional Republicans and Democrats came to an agreement on principles for the Treasury’s Troubled Asset Relief Program that they will take into final negotiations with the White House. It includes sections on taxpayer protections, oversight and transparency, homeownership preservation and funding authority. –Phil Izzo

The full text follows:

Agreement on Principles

1. Taxpayer Protection

1. 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

1. 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

1. 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

1. 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