AP: Lawmakers work to nail down $700B bailout plan

Posted by Kendall Harmon

A breakthrough came when Democrats agreed to incorporate a GOP demand β€” letting the government insure some bad home loans rather than buy them β€” designed to limit the amount of federal money used in the rescue.

Another important bargain, vital to attracting support from centrist Democrats and Republicans who are fiscal hawks, would require that the government, after five years, submit a plan to Congress on how to recoup any losses.

Lawmakers could block half the money and force the president to jump through some hoops before using it all. The government could get at $250 billion immediately, $100 billion more if the president certified it was necessary, and the last $350 billion with a separate certification β€” and subject to a congressional resolution of disapproval.

Still, the resolution could be vetoed by the president, meaning it would take extra-large congressional majorities to stop it.

The presidential nominees came behind the outlines of the bailout.

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Filed under: * Economics, PoliticsEconomyThe September 2008 Proposed Henry Paulson 700 Billion Bailout Package

Posted September 28, 2008 at 4:28 pm [Printer Friendly] [Print w/ comments]
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