REPORTING FOR DUTY
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Oct
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Text Of The Senate Emergency Bailout Bill
October 2, 2008 | 3 Comments
Here is the full text of the Asset Nationalization Act that passed out of the Senate this evening.
Here is one paragraph that jumps out at me:
(c) REGULATORY MODERNIZATION REPORT.—The Secretary shall review the current state of the financial markets and the regulatory system and submit a written report to the appropriate committees of Congress not later than April 30, 2009, analyzing the current state of the regulatory system and its effectiveness at overseeing the participants in the financial markets, including the over-the-counter swaps market and government-sponsored enterprises, and providing recommendations for improvement, including— (1) recommendations regarding— (A) whether any participants in the financial markets that are currently outside the regulatory system should become subject to the regulatory system; and (B) enhancement of the clearing and settlement of over-the-counter swaps; and (2) the rationale underlying such recommendations.
The next congress is going to wield a lot of power with long lasting ramifications becuase of this paragraph. Will we have another Clintonesq lurch toward socialism with Obama at the helm? Or will we have real reason for hope that an awakened America will start paying attention to what the ruling class is doing, and demand an end to their ignorance, greed, and social engineering/inference in the credit markets?
UPDATE:
Here is a section that makes me think that they may not be serious about pulling away from the brink of socialist ruin in the credit markets
SEC. 109. FORECLOSURE MITIGATION EFFORTS.
(a) RESIDENTIAL MORTGAGE LOAN SERVICING STANDARDS.—To the extent that the Secretary acquires mortgages, mortgage backed securities, and other assets secured by residential real estate, including multifamily housing, the Secretary shall implement a plan that seeks to maximize assistance for homeowners and use the authority of the Secretary to encourage the servicers of the underlying mortgages, considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures.In addition, the Secretary may use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.
I am not an expert in these matters, but that sounds very business as usual.
UPDATE:
There are a whole bunch of new (not really) federal agencies with very socialist sounding names.
Federal property manager
Federal Housing Finance Agency
Federal National Mortgage Association
Federal Home Loan Mortgage Corporation
Here is some of what they can do:
(2) MODIFICATIONS.—In the case of a residential mortgage loan, modifications made under paragraph (1) may include— (A) reduction in interest rates; (B) reduction of loan principal; and (C) other similar modifications.
UPDATE:
The new debt “Ceiling”
SEC. 122. INCREASE IN STATUTORY LIMIT ON THE PUBLIC DEBT. Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting ‘‘$11,315,000,000,000’’.
Comments
3 Comments so far
Everything the Gov’t touches turns to crap why are we desperate for this “bailout”? A little pain, tightening out belt, not getting all the CREDIT we want is a good thing! I hope our country does not pass this bill…..
What about all the “sweeteners” that have been added here? Does anyone know if the $500,000 for ACORN was taken OUT???
It sounds to me like the “loan modifications” section is simply codifying that they still have permission to do the things that banks have done in the past to try and avoid a foreclosure.
Charlie- So why not let the marketplace continue to do it? Why should the fed be allowed to set someones mortgage principal and interest rates of a given loan?
It’s just another example of the Federal government inserting influence on what should be a free market. The more they rig it, the longer we will all feel the pain.