Yarmuth Provides Details of Bailout Plan
WASHINGTON - Rep. John Yarmuth, D-3rd District, today made public some of the details of a financial rescue plan being worked out between the Bush administration and congressional leaders.
The details are based on a meeting Yarmuth had with one of the top negotiators on the financial rescue package, Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee.
Yarmuth told reporters in a telephone conference call that these elements are in the deal:
The package would total $700 billion, but Congress would only authorize that much, not spend it all at once. Instead, lawmakers would make $250 billion immediately available. Another $100 billion would be made available later. For the last $350 billion, the president would have to request it, or any part of it, from Congress. Lawmakers could approve or disapprove that request.
Compensation for CEOs and so-called "golden parachutes" for executives in affected companies would be limited.
A system of warrants would be set up so taxpayers could share in any profits earned during the government bailout and subsequent sale of assets.
A bipartisan panel to oversee the bailout process would be appointed by the speaker of the House and the majority leader of the Senate.
Any sale or purchase of any asset connected with the bailout would be made available for public scrutiny online and in real time.
Yarmuth said he was told there also are some provisions to help homeowners who have mortgage trouble, but he does not know the details.
The Louisville congressman said he still has very deep concerns about approving the rescue plan and thinks that, at the moment, there is not a majority in the House to pass it.
"We are being asked to make the largest financial commitment in the history of the United States in three or four days," Yarmuth said. "That's a pretty difficult thing to deal with."
9/25/08
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