$700-billion Wall Street bailout plan is unveiled
Congressional and administration officials unveiled their $700-billion rescue plan for Wall Street today, setting up the largest government intervention in the economy since the Great Depression.
The plan includes a program to purchase bad assets and an insurance program to underwrite others. It would also require the government to gain an equity stake in companies that benefit from the rescue, ensuring that taxpayers would make money once the assets regained some value. And the deal would require curbs on executive pay and the $700 billion to be released in installments.
"This agreement, while not perfect, is going to stabilize the economy and it's going to protect the taxpayers," Senate Majority Leader Harry Reid (D-Nev.) said.
The 110-page bill is posted on the website of the House Financial Services Committee. It is expected to be voted on by the House as soon as Monday and by the Senate on Wednesday.
"This is not about a bailout of Wall Street," said House Speaker Nancy Pelosi (D-San Francisco). "It's a buy-in so we can turn our economy around" and protect the assets of ordinary Americans.
Pelosi said she expected the legislation to pass with bipartisan support.
"This is not a Democratic bill," she insisted. "This is a bill that was sent by the president, improved by the Congress. . . . And we will need to have bipartisan support to pass this bill."
But the plan faces fierce opposition from Republicans and Democrats angry at what they say is a taxpayer bailout of Wall Street "fat cats." As the House opened for an unusual Sunday session, lawmakers from both parties rose, one after another, for one-minute speeches denouncing the agreement -- and signaling a continuing struggle as policymakers and their staff work out the final details.
"This morning we should be very much alarmed," said Rep. Scott Garrett (R-N.J.), addressing taxpayers directly. "Obviously, Washington is not listening to your wishes. Those who used to work for Goldman Sachs will support this deal. . . . Those who have blocked reform in the past will support this deal. I will not support this deal."
Rep. Marcy Kaptur (D- Ohio) railed against the agreement and the Wall Street financiers who would be helped. "These criminals have so much political power they can shut down the normal legislative process," she said.
Rep. Ted Poe (R- Texas) rose to compare the administration's urgings to rush a bailout plan to the pressure exerted on Congress to act after the Sept. 11 terrorist attacks.
