Details On Wall Street Bailout Deal

This is an e-mail circulating among New Democrats, a group on progressive Democrats, on Sunday morning that lays out some of the details of the Wall Street bailout package agreed to by House, Senate and White House negotiatiors late Saturday night.

Here's the full text of the e-mail, which was sent out about just before noon today: "Below is an update on everything that has happened with the economic  rescue package. The deal is done and agreed to by all parties.

House Dem. Leadership mtg.

Dem. leadership members want to go to [R]ules [C]ommittee Sunday afternoon and consider the bill late Sunday night or Monday morning. Dem. leadership members want the deal to be finalized tonight. Dem.  leadership members will allow 1 hour debate on the rule and 4 hours debate on bill. Will be a closed rule. Dem. leadership members haven't decided if the bill will originate in the House or the Senate. Dem. leadership members identified the following issues as top priorities:

1) Pay-for similar to the [Rep. John] Tanner proposal

2) Strengthen tranches language

3) Executive Compensation

4) Warrants

5) Proxy access

Principal mtg.

Attendees:

Reps. Frank, Rangel, Emanuel and Blunt; Sens. Dodd, Reed, Schumer, Conrad, Baucus, Gregg; Sec. Paulson and treasury staff; (27 staffers) SBUC, HFSC, House and Senate Leadership staff.

The outstanding issues are below and there resolution are noted:

Solved (Treasury will offer compromise language)

Broadening authority beyond purchases
Issue: Whether to expand authority to explicitly permit Treasury to
provide guarantees or loans.
Issue: Add full guarantee program framework and reporting.

Solved (out of the package but was raised/pushed by Senate Dems.)

Use of Profits for affordable housing
Issue: Whether 20% of profits on ultimate disposition of assets
should be used for Affordable Housing Fund

Solved (in the package)

Foreclosure mitigation
Issue: Whether to include a requirement that Treasury adopt a
systematic program for reduction in foreclosures.

Solved (in the package but properties will not be made available to
states and local governments)

Assistance to homeowners
Issue: Whether to require the FHA, Federal Reserve, and FDIC to:(1) adopted systematic approach to preventing foreclosure; (2) make foreclosed properties available at a discount to state and local governments receiving emergency assistance; and (3) encouraging loan servicers to engage in loan modifications and make properties available to state and local governments.
Continue reading post...