Lawmakers Want Additions to Bailout Plan
WASHINGTON -- Some financial service companies could have limits on their compensation, there would be stronger regulation, and the government would get shares of private corporations if congressional Democrats get their wishes included in the Bush administrations $700 billion financial bailout plan.
House and Senate drafts of the proposal, which like the original measure gives credit unions the right to sell distressed loans or mortgaged-backed securities to the government, would limit the executive pay at companies participating in the program. Treasury Secretary Henry Paulson has said the administration opposes the provision, though it's not clear if its inclusion in the final version would trigger a veto.
The Senate version also contains provisions allowing the government to take shares of a company that participates in the program and also creates a regulatory oversight panel, made up of representatives from the Federal Reserve, the FDIC and SEC.
Congressional Republicans are pushing for greater oversight as well, including creating a House-Senate panel that would have jurisdiction over the new entity and also want to guarantee that any profits are returned to the Treasury.
President Bush on Monday praised lawmakers for considering the proposal so promptly but urged lawmakers to resist the temptation "to insist on provisions that would undermine the effectiveness of the plan."