***BREAKING*** GOVT WANTS STOCKS IN ADDITION TO BAD DEBTS | |
Me114 (OP) User ID: 323570 United States 09/22/2008 02:42 PM Report Abusive Post Report Copyright Violation | [link to www.bloomberg.com] Dodd Proposes Giving U.S. Equity Stake for Bad Debt (Update2) By Dawn Kopecki and James Rowley Sept. 22 (Bloomberg) -- Senate Banking Committee Chairman Chris Dodd offered an alternative today to the Bush administration's financial rescue plan aimed at giving the U.S. Treasury an equity stake when it helps companies burdened by debt. Dodd, a Connecticut Democrat, is circulating a draft of his bill as Congress seeks to deal with a financial crisis that has been called the U.S.'s worst since the Great Depression. The Bush administration is proposing a $700 billion plan to buy devalued assets from investment firms to keep the financial system from coming to a halt. Democrats have pledged to act quickly on the measure, even as they seek to create an oversight structure, limit the compensation of executives at the companies benefiting from the rescue and provide mortgage relief for struggling borrowers. ``We cannot just turn over $700 billion in taxpayer money and not insist that that taxpayer is going to be protected in this,'' Dodd told reporters yesterday. Treasury Secretary Henry Paulson has urged Congress to pass legislation without delay and without linking it to new programs. ``We need this to be clean and quick, and we need to get it in place,'' Paulson said yesterday in an interview with ABC News. Equity Stake The legislation requires Treasury to take an equity stake equal to the purchase price of the assets being bought. If the company isn't publicly traded, the government would take senior debt instead, placing it in the front of the line of debt holders for repayment in the event of a bankruptcy. Dodd's proposal also would create a five-member oversight board to supervise the Treasury secretary's purchase and sale of distressed mortgage debt. It would consist of the chairmen of the Federal Reserve, Federal Deposit Insurance Corp. and the Securities and Exchange Commission as well as two members from the financial industry designated by congressional leaders. The board would be authorized to set up a so-called credit review company consisting of Treasury employees to study the soundness of the purchases. Under the plan, the government would be required to obtain an equity stake equal to the value of the debt that is purchased from the companies, including those whose shares are not publicly traded. The Treasury secretary would also be required to issue weekly public reports on the amount of assets bought and sold by the U.S. Penalize Executives Dodd is proposing to penalize executives who take ``inappropriate or excessive'' risks. The executive compensation and severance packages could be reduced if that is ``in the public interest,'' the proposal says. It would also force executives to give back profits they earned that were based on company accounting measures that are later found to be inaccurate. Republican presidential candidate John McCain, who has supported giving shareholders a bigger say in executive compensation in the past, said today that taxpayers shouldn't foot the bill for ``golden parachutes'' for officers of companies that have crumbled in upheaval on Wall Street. ``The senior executives of any firm that is bailed out by Treasury should not be making more than the highest paid government official,'' McCain said at a campaign event in Scranton, Pennsylvania. The president is the highest paid federal official, with a salary of $400,000 a year. U.S. Representative John Campbell, a California Republican and a member of the House Financial Services Committee, said that while he supports the Treasury proposal, he's willing to consider the creation of an oversight board and executive-pay limitations. Committee Republicans plan to meet later today to discuss the issue, Campbell said. ``I don't think we have a lot of choice,'' Campbell said. ``And the consequences of doing nothing are unconscionable.'' To contact the reporter on this story: Dawn Kopecki in Washington D.C. at [email protected]. Last Updated: September 22, 2008 12:47 EDT :rolleyes: :ura: Sweet Thoughts! I Unknown Depths of Love, You. What Happens Next Loves me. Help me Jesus, Life will let me know. Living is Effortless Normal God Inside, Outside, Everywhere, Forever! Executive Order 13603 means slavery in the usa Thread: The End of All Things Is Upon Us - An Urgent Message from Father God Thread: Nothing is Something and Non-Existence must Exist Thread: Not Knowing is Essential to Eternal Life! Thread: Let's talk about the Evil-Mind-Beings (EMB) Thread: ALERT! Father God says, now, " I will go down now, and see whether they have done altogether according to the cry of it" Thread: WE CAN DEFEAT THE ANTICHRIST !!! |
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Anonymous Coward User ID: 508419 United States 09/22/2008 02:58 PM Report Abusive Post Report Copyright Violation | I am a conservative Republican but I agree with Dodd. If we are going to buy all the banks toxic paper, I say we take a big chunk of their good assets as collateral. If the fuckers went bankrupt, they would lose everything. Why should Joe Sixpak get stuck with the results of their bad decisions. Get back to basics. I lend you money, you put up some collateral to ensure that you will pay back the loan. Otherwise, fuck off. |
Me114 (OP) User ID: 323570 United States 09/22/2008 03:15 PM Report Abusive Post Report Copyright Violation | does this addition mean what i think it means? that they will take houses, money, and companies from us? :rolleyes: :ura: Sweet Thoughts! I Unknown Depths of Love, You. What Happens Next Loves me. Help me Jesus, Life will let me know. Living is Effortless Normal God Inside, Outside, Everywhere, Forever! Executive Order 13603 means slavery in the usa Thread: The End of All Things Is Upon Us - An Urgent Message from Father God Thread: Nothing is Something and Non-Existence must Exist Thread: Not Knowing is Essential to Eternal Life! Thread: Let's talk about the Evil-Mind-Beings (EMB) Thread: ALERT! Father God says, now, " I will go down now, and see whether they have done altogether according to the cry of it" Thread: WE CAN DEFEAT THE ANTICHRIST !!! |
Anonymous Voice User ID: 472369 United States 09/22/2008 03:25 PM Report Abusive Post Report Copyright Violation | They may be assuming too much and they can not guarrantee anything either. Their egos may be cashing checks their brains do not allow (with the subconscious and unconscious.) This is because it is possible that the religious websites are correct about the future as far as their corner of the world goes. If you disaggree then fine, but take computer programming and first find out how much you assume (because you will end up spending more time to correct the program because it will not work in the end). That is what hate will do even if some people deny it. |
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Anonymous Coward User ID: 373696 United States 09/22/2008 03:29 PM Report Abusive Post Report Copyright Violation | does this addition mean what i think it means? Quoting: Me114that they will take houses, money, and companies from us? No, it means they will take ownership of some of the assets of these companies, as well as the debt. Makes sense to me, if I have to take the risk, I should be vested in the payoff, whenever it comes. |
Me114 (OP) User ID: 323570 United States 09/22/2008 03:32 PM Report Abusive Post Report Copyright Violation | does this addition mean what i think it means? Quoting: Anonymous Coward 373696that they will take houses, money, and companies from us? No, it means they will take ownership of some of the assets of these companies, as well as the debt. Makes sense to me, if I have to take the risk, I should be vested in the payoff, whenever it comes. 51% is all u need to OWN the company :rolleyes: :ura: Sweet Thoughts! I Unknown Depths of Love, You. What Happens Next Loves me. Help me Jesus, Life will let me know. Living is Effortless Normal God Inside, Outside, Everywhere, Forever! Executive Order 13603 means slavery in the usa Thread: The End of All Things Is Upon Us - An Urgent Message from Father God Thread: Nothing is Something and Non-Existence must Exist Thread: Not Knowing is Essential to Eternal Life! Thread: Let's talk about the Evil-Mind-Beings (EMB) Thread: ALERT! Father God says, now, " I will go down now, and see whether they have done altogether according to the cry of it" Thread: WE CAN DEFEAT THE ANTICHRIST !!! |
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Anonymous Coward User ID: 490844 United States 09/22/2008 03:34 PM Report Abusive Post Report Copyright Violation | does this addition mean what i think it means? Quoting: Anonymous Coward 373696that they will take houses, money, and companies from us? No, it means they will take ownership of some of the assets of these companies, as well as the debt. Makes sense to me, if I have to take the risk, I should be vested in the payoff, whenever it comes. GOVERNMENT OWNERSHIP OF ASSETS USA IS DEAD. |
idiot User ID: 469144 United States 09/22/2008 03:45 PM Report Abusive Post Report Copyright Violation | the capitalist system has fallen and it can't get up?!?!?!?! democrats wish to FURTHER ENSLAVE THE PUBLIC with stranglehold economic tactics!!! the crooks in DC wish to dig deeper into YOUR pocket!! to bail out the golden parachutes!! the result is america become the 'richest third world economy'!!! congress is now currently destroying what is left of the capital carcass... stealing all the 'fluff out of everyones pillows'!!!! EXCEPT congress will steal taxpayers futures and social securities mountain WITHOUT a care and then DOWN THE TUBES... presto the system is flushed away and all the wealth of the people is GONE to THIN AIR!!! these perhaps never to be disclosed tyrannies being dealt as loosing hands to an already bankrupt citizenry!! wars are created when overdue bills need to be paid and killing those who come knocking on the door for payment is the only way out; the back door is locked and the shotgun is loaded; the pantry is almost empty and the knocks are bound to be heard before too long... smells like a powder-keg starting to sizzle, better run for your lives less the shackles and chains can fill your hunger brother, hope you got a plan uncle sam!! this whole crisis stinks of faux play and be warned these times they are a changing rapidly!! |
Me114 (OP) User ID: 323570 United States 09/22/2008 03:57 PM Report Abusive Post Report Copyright Violation | Good for Dodd, good for Obama for standing up to the creeps. At least this way we get something out of those farkers Quoting: Anonymous Coward 419558u are not understanding whomever holds 51% of the stock (or can get 51% of stockholders to agree ) can control the board of the company and determine the whole business plan u do not want the govt to own that power in our companies :rolleyes: :ura: Sweet Thoughts! I Unknown Depths of Love, You. What Happens Next Loves me. Help me Jesus, Life will let me know. Living is Effortless Normal God Inside, Outside, Everywhere, Forever! Executive Order 13603 means slavery in the usa Thread: The End of All Things Is Upon Us - An Urgent Message from Father God Thread: Nothing is Something and Non-Existence must Exist Thread: Not Knowing is Essential to Eternal Life! Thread: Let's talk about the Evil-Mind-Beings (EMB) Thread: ALERT! Father God says, now, " I will go down now, and see whether they have done altogether according to the cry of it" Thread: WE CAN DEFEAT THE ANTICHRIST !!! |
Anonymous Coward User ID: 373696 United States 09/22/2008 04:08 PM Report Abusive Post Report Copyright Violation | Good for Dodd, good for Obama for standing up to the creeps. At least this way we get something out of those farkers Quoting: Me114u are not understanding whomever holds 51% of the stock (or can get 51% of stockholders to agree ) can control the board of the company and determine the whole business plan u do not want the govt to own that power in our companies Why not? Current ownership is corrupt & incompetent, congress can hardly do worse. At least they're motivated to impress voters, not just plutocrats. Besides it's been done before with no more sacrifice of our freedom than the Patriot Act took. |