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06.25 Louella Learns the Limits of Medicare

06.23 The Simple Answer to America’s Health Care Crisis: Medicare for All

06.23 Tell ABC: Include Single-Payer in Healthcare Debate

06.23 Serving the Medical-Industrial Complex

06.22 Thinking about Recoveries

06.20 Obama's Health Care Waterloo

06.15 Obama, Like Clinton Before Him, is Blowing the Chance for Real Health Care Reform

06.11 Two Key Health-Care Numbers

06.10 Big Breakthroughs for Single Payer Health Care

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06.17 Hypocrisy and Hope: Western Coverage, Iranian Courage

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06.30 Obama's Torture Hypocrisy

06.30 Court Circular: Annals of Imperial Continuity

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06.26 Who to Trust on a Truth Commission?

06.26 Tarnished Shields: The Morally Bankrupt 'Family Values' Republican Leadership

06.25 America's "Bases of Empire"

06.24 Twelve Angry White People: Jury Nullification in a Pennsylvania Coal Town

06.24 Touring Empire's Ruins

06.23 Employers are Undermining the Economic Stimulus Program

06.19 Criminalizing Dissent: Obama Pot Calls Iranian Kettle Black

06.17 Afghanistan's Operation Phoenix

06.16 Are You Ready for War with a Demonized Iran?

06.13 Where's the Anger as the Wheels Come Off Obama's and the Democrats' Recovery Program?

06.10 Waiving the Rules for Old Glory

06.10 Obama's Era of Openness Is Closed

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07.03 Reviewing Marjorie Cohn and Kathleen Gilberd's "Rules of Disengagement"

07.01 Iraq: A Bitter Strategic Failure

06.25 It's All Good, Again: 'Uptick' in the American-Made Tides of Violence in Iraq

06.22 Obama Opposes Plame-gate Release

06.21 Dexter's Legions: The "Good" Killers of the "Good" War

06.18 Extending the Tradition: Proudly Taking American Torture Into the Future

06.15 New UN Report Denounces America's Human Rights Record

06.14 Fear Rules

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07.01 Michael Hudson's "Super Imperialism:" The Economic Strategy of Imperial America

06.23 Obama's Financial Reform Proposal - A Stealth Scheme for Global Monetary Control

06.10 Cyberscares About Cyberwars Equal Cybermoney

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07.01 Pirates of the Mediterranean

06.29 Color Revolutions, Old and New

06.25 Iran Divided & the 'October Suprise'

06.23 Astringent Corrective: AbuKhalil on Iran's Turmoil

06.22 Reviewing F. William Engdahl's "Full Spectrum Dominance: Totalitarian Democracy in the New World Order:" Part I

06.20 Are the Iranian Protests Another US Orchestrated “Color Revolution?”

06.20 Through a Glass Darkly: Sifting Myth and Fact on Iran

06.19 Iran's Election and US - Iranian Elections

06.16 The Ir-Af-Pak War: Obama Looses the Manhunters

06.12 Israeli War Crimes Against Children During Operation Cast Lead

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  Text of Draft Proposal for Bailout Plan
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BACKGROUND:

Text of Draft Proposal for Bailout Plan

SOURCE: US Treasury Department
"The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time"
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY TO PURCHASE MORTGAGE-RELATED ASSETS

Section 1. Short Title.

This Act may be cited as ____________________.

Sec. 2. Purchases of Mortgage-Related Assets.

(a) Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.

(b) Necessary Actions.--The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:

(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;

(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;

(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;

(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and

(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.

Sec. 3. Considerations.

In exercising the authorities granted in this Act, the Secretary shall take into consideration means for--

(1) providing stability or preventing disruption to the financial markets or banking system; and

(2) protecting the taxpayer.

Sec. 4. Reports to Congress.

Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.

Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.

(a) Exercise of Rights.--The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.

(b) Management of Mortgage-Related Assets.--The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.

(c) Sale of Mortgage-Related Assets.--The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.

(d) Application of Sunset to Mortgage-Related Assets.--The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.

Sec. 6. Maximum Amount of Authorized Purchases.

The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time

Sec. 7. Funding.

For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Sec. 9. Termination of Authority.

The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.

Sec. 10. Increase in Statutory Limit on the Public Debt.

Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.

Sec. 11. Credit Reform.

The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.

Sec. 12. Definitions.

For purposes of this section, the following definitions shall apply:

(1) Mortgage-Related Assets.--The term “mortgage-related assets” means 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 September 17, 2008.

(2) Secretary.--The term “Secretary” means the Secretary of the Treasury.

(3) United States.--The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.




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This story was published on September 24, 2008.
 


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