Emergency Economic Stabilization Act of 2008
From Wikipedia, the free encyclopedia
 |
This article documents proposed legislation that is currently being considered. Information may change rapidly as the course of legislation progresses. |
 |
It has been suggested that Proposed bailout of United States financial system be merged into this article or section. (Discuss) |
The Emergency Economic Stabilization Act of 2008 was a proposed amendment to the bill H.R. 3997, introduced to the United States House of Representatives. The House voted not to accept the amendment to the bill on September 29, 2008, by a vote of 205-228, with one Representative not voting.[1][2] See Proposed bailout of United States financial system, for a description of the events and media commentary leading to and subsequent to the drafting of the legislation.
Contents |
[edit] Text of the official summary of proposed 106-page bill: Emergency Economic Stabilization Act [3]
[edit] Text of Paragraph: Stabilizing the Economy
"The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion to the Secretary of the Treasury to buy mortgages and other assets that are clogging the balance sheets of financial institutions and making it difficult for working families, small businesses, and other companies to access credit, which is vital to a strong and stable economy. EESA also establishes a program that would allow companies to insure their troubled assets."
[edit] Text of Paragraph: Homeownership Preservation
"EESA requires the Treasury to modify troubled loans - many the result of fraudelent and low doc/no doc applications - wherever possible to help American families keep their homes. It also directs other federal agencies to modify loans that they own or control. Finally, it improves the HOPE for Homeowners program by expanding eligibility and increasing the tools available to the Department of Housing and Urban Development to help more families keep their homes."
[edit] Text of Paragraph: Taxpayer Protection
"Taxpayers should not be expected to pay for Wall Street's mistakes. The legislation requires companies that sell some of their bad assets to the government to provide warrants so that taxpayers will benefit from any future growth these companies may experience as a result of participation in this program. The legislation also requires the President to submit legislation that would cover any losses to taxpayers resulting from this program by charging a small, broad-based fee on all financial institutions."
[edit] Text of Paragraph: No Windfalls for Executives
"Executives who made bad decisions should not be allowed to dump their bad assets on the government, and then walk away with millions of dollars in bonuses. In order to participate in this program, companies will lose certain tax benefits and, in some cases, must limit executive pay. In addition, the bill limits 'golden parachutes' and requires that unearned bonuses be returned."
[edit] Text of Paragraph: Strong Oversight
"Rather than giving the Treasury all the funds at once, the legislation gives the Treasury $250 billion immediately, then requires the President to certify that additional funds are needed ($100 billion, then $350 billion subject to Congressional disapproval). The Treasury must report on the use of the funds and the progress in addressing the crisis. EESA also establishes an Oversight Board so that the Treasury cannot act in an arbitrary manner. It also establishes a special inspector general to protect against waste, fraud and abuse."
[edit] See also
[edit] References
- ^ Hirschfeld Davis, Julie (2008-09-29). "House defeats $700B financial markets bailout". Associated Press.
- ^ "Final Vote Results for Roll Call 674". Clerk of the United States House of Representatives (2008-09-29).
- ^ http://www.house.gov/apps/list/press/financialsvcs_dem/summary_of_the_eesa2.pdf
