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Thread: Bailout talks in disarray. Repugs move the goalposts at the 11th hour

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    Default Bailout talks in disarray. Repugs move the goalposts at the 11th hour

    Bailout talks in disarray
    Democrats say they reached agreement on principles, but House Republicans balk. White House meeting called 'contentious.'
    By Tami Luhby, CNNMoney.com senior writer
    Last Updated: September 25, 2008: 10:38 PM ET

    NEW YORK (CNNMoney.com) -- One day after President Bush said the nation's economy is at grave risk, the high-stakes negotiations over the proposed $700 billion bailout of the financial system ended in chaos on Thursday.

    Lawmakers bickered over competing counterproposals and hours of meetings between key lawmakers broke down without any progress late into the evening.

    A meeting at the White House between President Bush, congressional leaders and the presidential candidates was meant to speed approval of an agreement. Instead, the session revealed deep divisions between Democrats and House Republicans.

    As a result, House and Senate leaders and Treasury Secretary Henry Paulson rushed to Capitol Hill at 8 p.m. to try to hash out a deal.

    But shortly after 10 p.m., Rep. Barney Frank, D-Mass., the lead House Democrat on the issue who had been in close talks with Paulson for days, accused Republicans of refusing to negotiate.

    "At this point, we have absolutely no participation or cooperation from House Republicans," Frank said.

    The next step was not clear late Thursday night. One thing seems certain: Lawmakers won't recess for the year on Friday, as originally planned. Instead, if they can't reach a deal in the next 24 hours, they're likely to work through the weekend.
    The page many thought they were on

    Leading Democrats said they were presented for the first time with the House Republican principles at the White House meeting.

    Senate Banking Committee Chairman Christopher Dodd, D-Conn., said the White House meeting was thrown off course when participants were blindsided by a new "core agreement" that emerged in the meeting that not many had seen before.

    Earlier in the day, congressional negotiators said they had agreed to a set of principles on revisions to the rescue plan, which calls for the Treasury Department to buy up bad mortgage securities from banks in an effort to get them to lend again.

    The proposal, as amended by leaders in both chambers, will help homeowners, curb executive pay packages at participating firms and provide oversight of Treasury's actions, Dodd said in a lunchtime address.

    "We've reached a fundamental agreement on a set of principles, one, for taxpayers, which is tremendously important," he said. "We're very confident we can act expeditiously."
    Details on the plans

    The principles the Democrats said had been agreed upon call for Congress to make $250 billion available immediately with $100 billion available, if needed, without requiring additional congressional approval, said two senior Democratic aides familiar with the negotiations. The second half of $350 billion would then become available by a special approval of Congress.

    On executive compensation, the draft would require limits on compensation for executives of any company participating in the bailout. These caps would apply for as long as the company is in the program. This would include some language to limit excess "golden parachutes."

    Treasury will also get an equity stake in the companies being helped by the bailout, though what type remains to be worked out.

    Still to be worked out is whether to allow bankruptcy judges to modify mortgage terms, a provision backed by many Democrats and community activists but opposed by Republicans and the banking industry.
    What House Republicans want

    The bankruptcy provision is not the only sticking point, however. House Republicans are not on board, according to Minority Leader Rep. John Boehner, R-Ohio.

    "House Republicans have not agreed to any plan at this point," Boehner said.

    Instead, they issued a statement of economic rescue principles that calls for Wall Street to fund the recovery by injecting private capital - not taxpayer dollars - into the financial markets. Easing tax laws would prompt investors to put in their own dollars, they said.

    The plan also calls for: participating firms to disclose the value of the mortgage assets on their books, ending Fannie Mae and Freddie Mac's securitization of "unsound mortgages," reviewing the performance of the credit rating agencies and having the Securities and Exchange Commission audit failed companies to ensure their financial standing was accurately portrayed.

    House Republicans also want to create a panel to make recommendations for reforming the financial industry by year's end.

    Meanwhile, the ranking Republican on the Senate Banking Committee has another idea. Sen. Richard Shelby, R-Ala., said he doesn't support the Treasury plan until there is serious consideration of alternatives. He proposed Thursday adding funds to the Federal Reserve and Treasury to allow them to lend more to financial institutions.
    Bush still hopeful

    Before the afternoon meeting, Bush said he expects a deal "very shortly."

    After, a counselor to the president said "we're getting closer. There's some more that has to be done. It's going to be a consensus plan at the end of the day."

    "Both sides are going to have to work hard to get to an agreement," presidential counselor Ed Gillespie said on CNN.

    Administration officials have spent countless hours this week behind closed doors with and in public hearings before Congress. Lawmakers were hoping to have a deal agreeable to both parties hammered out before Thursday's meeting at the White House.

    On Wednesday night, Bush took the nation's airwaves in a prime-time address in which he laid out a looming economic disaster.

    "The government's top economic experts warn that, without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold," Bush said. "More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet. Foreclosures would rise dramatically."
    Lawmakers split over bailout - Sep. 25, 2008

    I can't even believe there is discussion over the golden parachute clauses. Give me a fucking break. It's like the guys who get canned after 18 months due to screwing the company finances and walk away with a cool couple million. I say make the bastards pay the money back, no matter how long it takes them. If I defaulted on my mortgage I'd have to pay it back or lose my house. They should be held to the same standard....unless they're willing to let alot of people default on their mortgages and still keep their homes.
    'Those who sacrifice liberty for security deserve neither.' Ben Franklin

    "When fascism comes to America, it will be wrapped in the flag and carrying the cross."
    --Sinclair Lewis

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    Elite Member Grimmlok's Avatar
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    Instead, they issued a statement of economic rescue principles that calls for Wall Street to fund the recovery by injecting private capital - not taxpayer dollars - into the financial markets. Easing tax laws would prompt investors to put in their own dollars, they said.
    are you fucking stupid? are you? did you flush your fucking brain down the toilet?

    jesus christ! You deregulated these assholes, and they went mental and lost all the money. You think they're going to VOLUNTEER to help with MORE? ARE YOU FUCKING BRAINDEAD???!
    I am from the American CIA and I have a radio in my head. I am going to kill you.

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    Gold Member mamaste's Avatar
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    Thank goodness Underdog... err McCain... ran to Washington to save the day. Where would we be without him? And he's kind enough to fight for the taxpayers right to fund the greed and mismanagement of Wall Street. With less regulation and oversight no less! Three cheers for McCain!

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    Elite Member Grimmlok's Avatar
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    Gimme a P! Gimme an O! GImme a W!
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    ^^Snicker and snicker again.
    'Those who sacrifice liberty for security deserve neither.' Ben Franklin

    "When fascism comes to America, it will be wrapped in the flag and carrying the cross."
    --Sinclair Lewis

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    Elite Member kingcap72's Avatar
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    McCain is keeping quiet, because he knows he put himself into a box. If he backs the Paulson version of the plan, which both parties hate, he looks bad, but if he blocks any bailout plan, and Wall Street continues to tank he looks bad. He's just waiting to see if something gets settled, and then he can try to take credit for it.

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    Friend of Gossip Rocks! buttmunch's Avatar
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    A selfish, opportunistic prick to the core it would seem.
    'Those who sacrifice liberty for security deserve neither.' Ben Franklin

    "When fascism comes to America, it will be wrapped in the flag and carrying the cross."
    --Sinclair Lewis

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    Silver Member albatross's Avatar
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    Quote Originally Posted by buttmunch View Post
    Lawmakers split over bailout - Sep. 25, 2008

    I can't even believe there is discussion over the golden parachute clauses. Give me a fucking break. It's like the guys who get canned after 18 months due to screwing the company finances and walk away with a cool couple million. I say make the bastards pay the money back, no matter how long it takes them. If I defaulted on my mortgage I'd have to pay it back or lose my house. They should be held to the same standard....unless they're willing to let alot of people default on their mortgages and still keep their homes.
    If you work for a company that only has to pay the bastards a couple million, then consider yourself lucky. At my company, one CEO caused our stock price to drop $60 in one day - he got $40 million to go away. The latest one came less than a year ago, promised to get the stock price back up to $35, less than 6 months later he announced he sold the company for $25/share - he got $66 million (grossed up, so he clears that, plus he was given 500,000 shares of stock as a bonus, which translates into another $12.5 million) and a job at the merged company, where he'll likely get another 8-figure payout when he screws up again. So, a couple million is chump change to these guys.
    Dear Buddha, please bring me a pony and a plastic rocket...

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    Elite Member tkdgirl's Avatar
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    Have any of you even bothered to READ the proposed bailout? Its crap! And Dems added funds to 'bailout' ACORN? Reid ads a little 'ban oil shale exploration' provision? Are you fucking kidding me? NONE of those things have anything to do with the shit that's happening now. Pork, pork, pork!

    Instead of agreeing lock step with your party, read the plan! We are all being screwed by this plan. Wouldn't you rather have actual debate about this than to rush it through? Isn't that the basic premise (fear) that Dems blame the quick passage of the Patriot Act?

    Look. Obama agrees with Bush's plan. So does that mean Obama is a stupid moron like Bush, or does it mean Bush is a genius like Obama?

    They are both morons. This plan sucks. Period.

    A government big enough to give you everything you want,
    is strong enough to take everything you have. ~Thomas Jefferson

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    Elite Member Grimmlok's Avatar
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    um, last i checked the rethugs were pissy because the Dems were setting ceo compensation limits and mortgage relief, and making treasury accountable.

    The rethugs walked because of THAT. Even Paulson admitted the rethugs were being stupid shitheads.
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    Elite Member nwgirl's Avatar
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    Quote Originally Posted by tkdgirl View Post
    They are both morons. This plan sucks. Period.
    Just a side note. Paul Begala on Anderson Cooper 360 last night called Bush a "high functioning moron" - I about fell out of bed laughing. I've never heard him referred to as such on a major news network. Maybe I don't watch them enough?
    "The difference between genius and stupidity is that genius has its limits."

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    Elite Member Brookie's Avatar
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    I used to work for Ford.

    When the new CEO, Mulally, came aboard a couple of years ago, he got $38 million just to show up (4th quarter 2007; not a bad salary for 3 months work), and a guarantee of another $38 million if he's let go. And, he was thoughtful enough to cancel his Lexus order as well. And we know what kind of shape Ford continues to be in.

    I got a reduced pension to retire early, then they lost my retirement papers which I hastily had to refile and overnight to Fidelity, so I got screwed out of my first month's pension. I appealed, but Ford said they just couldn't locate where they screwed up.

    Yeah, these clownz are so overpaid that they're out of touch with the reality of their employees' lives.

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    Elite Member nwgirl's Avatar
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    Quote Originally Posted by tkdgirl View Post
    Have any of you even bothered to READ the proposed bailout?
    I've only read the original draft. Where are you finding the new drafts with all the added pork?
    "The difference between genius and stupidity is that genius has its limits."

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    Elite Member Fluffy's Avatar
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    ^I was wondering about that myself since I haven't seen it released anywhere.

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    Gold Member mamaste's Avatar
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    I know the shale ban is in a different bill. It wasn't added to the bailout bill.

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