Plan B

[we_are_toast]

The Senate is proposing a Plan B.

Plan B

Update:

From what I've read so far, and from what I think I understand, Plan B looks a lot better than the Paulson(I want to be king) plan.

An oversight board with veto power over the secretary.
A required position in the company of equal and sometime 125% of what was bought from them.
Weekly reports to the public.
Monthly reports to the congress.
And more....

[Jeff]

Re: Plan B

The link seems to fail. Got another?

[jimmygu3]

Re: Plan B

The link seems to fail. Got another?

UPDATE 1-US Treasury agrees equity stake in bailout--Frank

Mon Sep 22, 2008 3:02pm EDT

(Recasts first paragraph; adds Frank quotes)
WASHINGTON, Sept 22 (Reuters) - The Bush administration has accepted changes to its $700 billion Wall Street bailout plan that would give the government a stake in institutions unloading assets under the plan, the chairman of the House of Representatives Financial Services Committee said on Monday.
The administration also has agreed that the plan should include more efforts to prevent home foreclosures and that an oversight board should be created to monitor the bailout, said Massachusetts Democratic Rep. Barney Frank.
"We got a lot of advice from people in the financial community that (Treasury) should also be able to take some equity and we agreed, and the secretary's agreed with that," Frank told reporters at a briefing.
"We also made it clear that if he takes that equity, it has to be with warrants," he said.
On reducing foreclosures, Frank said, "The foreclosure piece is agreed on. There was Republican congressional opposition but the administration accepted it.
"They've accepted our views on oversight ... There is some contention now over compensation and corporate governance." (Reporting by Kevin Drawbaugh and Donna Smith; Editing by Tim Dobbyn)

[ASH]

Re: Plan B

The Senate is proposing a Plan B.

Plan B

Update:

From what I've read so far, and from what I think I understand, Plan B looks a lot better than the Paulson(I want to be king) plan.

An oversight board with veto power over the secretary.
A required position in the company of equal and sometime 125% of what was bought from them.
Weekly reports to the public.
Monthly reports to the congress.
And more....

So far it sounds like Congress is doing a better job than I had feared.

[metalman]

Re: Plan B

So far it sounds like Congress is doing a better job than I had feared.

they wisely fear the angry mob!!!

[GRG55]

Re: Plan B

So far it sounds like Congress is doing a better job than I had feared.

Maybe not.

If a good portion of the funding for TARP to buy these assets comes from the GCC and Chinese SWFs, does that mean they get the equity that Congress is now demanding be included? Maybe Paulson wasn't so stupid after all with the original proposal...

I have no idea if $#*'s [self described] "delusional truths" have any validity, but I am loathe to dismiss anything that is carefully argued and passes my own "smell test".

Maybe what we are observing from the Administration are simply the behaviours of people under extreme pressure [anybody who has witnessed unexpected and often disappointing behaviours from presumably well known colleagues during a corporate restructuring and layoff will understand what I mean]; or maybe $#*'s implications that this game of international chicken is a means to a deliberate end will prove valid...:eek:

A well placed colleague of mine in the Arabian Gulf made the comment in a telecon today that "The US always expects the GCC to pay for its mistakes". Is it different this time?

[sunskyfan]

Re: Plan B

The more I hear about "the fix" the more I think it was a panicked response that sounded good at first but is simply unrealizable. More of the same. My old man always said ... if you can get a man to eat a spoon full of shit you can get him to eat a barrel full.

[D-Mack]

Re: Plan B

If they get the weakening of bankruptcy law, it could be a good thing, but I doubt that much will happen

Among the proposals circulating on Capitol Hill, the one gaining most political traction is a limitation on executive bonuses.

Some Democrats also want the government to take an ownership stake in any firm that gets a bail-out, and others want a significant weakening of bankruptcy laws to give judges discretion to allow families facing foreclosure to stay in their homes.

http://news.bbc.co.uk/1/hi/world/americas/7630802.stm

[LargoWinch]

Re: Plan B

The gov. does not fear the mob. They are prepared for this: