Package for Bailout Worked Out by Congress
House will vote on Monday, Senate takes it up Wednesday.
Compiled by staff
Published: Sep 29, 2008
Congressional leaders worked out a deal for a $700 billion bailout for the current financial crisis over the weekend. President Bush's original bailout plan was rewritten with several strings attached. Among additions to it were curbs to CEO pay and strict oversight and limits of payouts.
While both sides didn't get everything they wanted in the bill, leaders say it is a package that will pass.
Under the agreement the money will be paid in phases with $450 billion that will require Congressional approval if needed. Also the government will receive equity of companies it helps so taxpayers may share in future profits and if after five years the government is still taking losses, those companies will be assessed a fee to recoup taxpayers' outlay. The Treasury department has to report regularly to a Congressional committee on payouts and companies that participate can not send executives home with millions of dollars.
"This isn't about a bailout of Wall Street, it's a buy-in so we can turn our economy around," said Speaker of the House Nancy Pelosi, D-Calif.
House Minority Leader Jon Boehner, R-Ohio, originally was against the bailout but says he will support this package and urged his colleagues to do the same. Both presidential candidates also offered support of the proposal.
While expected to pass, there is some doubt about the margin in the House. The House will vote on the package Monday with the Senate taking it up Wednesday following the Tuesday holiday of Rosh Hashanah.
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