The Compromise Bailout Bill

From the Financial Times of London:

$700bn fund The core of the bill is a $700bn (€507bn, £395bn) fund that allows the US government to buy troubled, so-called “toxic” assets from financial institutions, to try to undo a logjam in financial markets that arises from uncertainty over what the assets are worth.
The programme is initially aimed at mortgage-backed securities and financial derivatives based on mortgages but could be extended to other assets if it is deemed necessary. Buying toxic assets The bail-out fund will seek to buy the assets using market mechanisms, in particular reverse auctions in which the government buys the cheapest assets on offer but is given leeway to vary its purchasing strategies if it is thought necessary to clear the toxic assets off the books of troubled institutions. Political sops Concessions to the Democrats include provisions to permit the Treasury to amend the terms of mortgages that it acquires as part of the programme to prevent foreclosures and the loss of family homes.
It also contains rules controlling executive pay in companies being aided by the purchases, preventing executives from leaving companies with big pay-offs and in some cases preventing them from receiving bonuses that were predicated on predicted earnings that did not materialise.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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