U.S. politicians are preparing to vote on rescue
U.S. Legislators are preparing for a crucial vote on the revision of $ US700 million ($ 840 million euro) rescue plan to banks on Wall Street designed to end a grave financial crisis and release the frozen credit markets.
The rescue package, a compromise forged in the high-stake negotiations between leaders of rival parties in Congress and White House officials over the weekend, is due to vote in the House of Representatives tonight (MST ), As the U.S. global financial markets and anxiously awaiting the results.
The plan marks the biggest economic intervention from the government since the Great Depression of the 1930s, and is designed to shore up an economy suffering from low U.S. a housing bubble that has plagued the global banking system and credit dried up.
The proposal gives the Secretary of the Treasury for permission to buy toxic mortgage-related assets in banks uncomfortable with the hope of easing the flow of credit and revive the moribund housing market.
Congressional leaders, mindful of the proximity of the November 4 general elections, have been rushing to find a comprehensive agreement before the end of the reopening of U.S. stock exchanges Sunday time.
President George W. Bush praised the bill, saying that the rescue was necessary “to help protect our economy against a scale of distribution.”
Bush, who is due to make a statement before markets opened in the U.S., said the plan “sends a strong signal to markets around the world that the United States is serious about restoring confidence and stability to our financial system.”
With some conservative Republicans Liberal Democrats, and opposed the plan, it is not clear if the ransom to win their approval.
Republican candidates for the White House John McCain and his Democratic rival Barrack Obama reluctantly gave cautious support for the plan, saying that they had made the claims have been incorporated into the new law.
The advance among lawmakers capped an extraordinary week Rollercoaster of financial markets in the world, sent into a tailspin by excessive exposure to the U.S. and international financial companies, both U.S. crises of sub prime mortgages.
Democratic lawmakers portrayed the revised plan, which was developed more than 100 pages, which improved significantly from the page for three days before release sent by the White House, saying it included stricter supervision and caps on executive pay packages.
“I work in a bipartisan way, to send a message to Wall Street. The game is over,’ said House Speaker Nancy Pelosi.
“The era of the golden parachute flying high for most of Wall Street traders. It was not U.S. taxpayer bail to the indifference of Wall Street.”
The rescue project, published in financialservices.house.gov and officially titled the Emergency Act of 2008, economic stabilization, calls for the immediate release of $ US250 million to allow the government to buy distressed assets.
Under the law, the president is authorized to approve a new $ US100 million, but the plan gives Congress a veto power on purchases above that limit and sets a limit on all purchases of $ US700 million.
The rescue operation will be overseen by a board, including the Federal Reserve chairman, Treasury Secretary and chairman of the Securities and Exchange Commission.
The council is one of four different processes or oversight bodies, which also include a presence in the Treasury and an independent inspector general of the office that would monitor the actions of Secretary of the Treasury.
There will be no “golden parachutes’ of CEO and other executives who lose or leave their jobs in firms that participate in the fund, while the Treasury holds shares in these companies.
The negotiations were marked by bitter disagreements reports on how to pay for losses incurred by taxpayers after the debt has been bought and sold.
Democratic lawmakers have called for financial companies to help pay the damages, but the bill left the question open for the next U.S. president to attack.
The White House has sought to reassure anxious Republican lawmakers, saying that the government expects that the acquired assets of distressed banks the ability to generate revenue and ease the potential burden on taxpayers.
“The impact on the taxpayer will be considerably less than $ US700 million,’ the White House budget director Jim Nussle wrote in a letter to the Republican leader in the House of Representatives, John Boehner.
The relief bill “clears acquisition of assets that, over time, will produce revenue and can be sold, Nussle”senhor wrote in the letter released by the White House.
Get The Latest News Updates to Your Inbox Free! |
| Get free updates directly to your e-mail from Onion Kid. Just enter your e-mail below and confirm your subscription by clicking the link that will be sent to your e-mail: |
Watch Video about: "U.S. politicians are preparing to vote on rescue"
|
|
Tags: bailout bill, financial services, financial services house, financial services.house.gov, speaker.gov
