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NEW YORK (CNNMoney.com) -- The federal government would provide as much as $700 billion in a far-reaching plan to rescue the nation's troubled financial system, according to a bill posted online by leading Democratic lawmakers on Sunday.

House Speaker Nancy Pelosi said she hopes the House will take up the bill on Monday. Sen. Majority Leader Harry Reid, D-Nev., said he believes the Senate can move on the legislation by Wednesday.

Key provisions of the bill
Doling the money out: The $700 billion would be disbursed in stages, with $250 billion made available immediately for the Treasury's use. Authority to use the money would expire on Dec. 31, 2009, unless Congress certifies a one-year extension.

Limiting executive pay: Curbs would be placed on the compensation of executives at companies that sell mortgage assets to Treasury. Among them, companies that participate will not be able to deduct the salary they pay to executives above $500,000.

They also will not be allowed to write new contracts that allow for "golden parachutes" for their top 5 executives if they are fired or the company goes belly up. But the executives' current contracts, which may include golden parachutes, would still stand.

Overseeing the program: The bill would establish two oversight boards.

The Financial Stability Oversight Board would be charged with ensuring the policies implemented protect taxpayers and are in the economic interests of the United States. It will include the Federal Reserve chairman, the Securities and Exchange Commission chairman, the Federal Home Finance Agency director, the Housing and Urban Development secretary and the Treasury secretary.

A congressional oversight panel would be charged with reviewing the state of financial markets, the regulatory system and the Treasury's use of its authority under the rescue plan. Sitting on the panel would be 5 outside experts appointed by House and Senate leaders.

Protecting taxpayers: One provision requires the president to propose legislation to recoup losses from the financial industry if the rescue plan results in net losses to taxpayers five years after the plan is enacted.

In addition, Treasury would be allowed to take ownership stakes in participating companies.

Insuring against losses: Treasury must establish an insurance program - with risk-based premiums paid by the industry - to guarantee companies' troubled assets, including mortgage-backed securities, purchased before March 14, 2008.

The amount the Treasury would spend to cover losses minus company-paid premiums would come out of the $700 billion the Treasury is allowed to use for the rescue plan.

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Agent 488

pdf:

http://www2.nationalreview.com/dest/...yo08c04xml.pdf

uno

This is going to be a huge clusterfuck.

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Iron Fist

I thought this was supposed to happen LAST Monday? Gimme a call when y'all know what's going on mmkay?

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marketsmart

one of the biggest thing that stinks about this plan is the members of the oversight committee... they are all balls deep in the financial system with plenty of bias towards the banking world...

tony286

Wait til all the consultants looking for a piece of the government sack of money start coming out of the wood work.

BFT3K

We just approved a TRILLION DOLLARS for defense a few days ago!

Ssssshhhhh - keep it on the down low...

http://blacklistednews.com/news-1664-0-22-22--.html

mynameisjim

How long until the first stories start coming out about how the banks misused all this free money?

I give it 3 months.

That's why they were so fast to pass something and tricked everyone into thinking they had to do something by the end of the weekend. Just like after 9/11, they passed laws like crazy even though everyone knew Al Qada only attacks every few years. There was no hurry, but you can pass whatever bullshit you want when people are scared and think the sky is falling.

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kane

So the current executives still get their golden parachutes even after running the companies into the ground. I think they should just not pay them. Let the execs sue for it and convince a judge/jury that they should get it.

tony286

From all Im reading releasing only 250 billion to start wont do shit. Wachoiva's bad mortgages alone is like 120 billion. The overseas markets think it wont be enough and looking at they might be right. To me if we are going to jump into the shit pool, lets jump into the deep end then wasting 700 billion dollars trying to be safe.

mn

usd gets stronger to euro because of this so i'm happy.

marketsmart

well before you get a hardon, theres a lot of financial data coming out this week like unemployment rate...

if these numbers are bad like i think they will be, i see a short lived spike in the dollar...

tony286

Over 7 percent it will be I had read somewhere. What was the level of unemployment during the depression?