ID :
21933
Tue, 09/30/2008 - 13:57
Auther :
Shortlink :
http://m.oananews.org//node/21933
The shortlink copeid
$700 bn bail out deal unveiled to rescue US's financial system By Sridhar Krishnaswami
Washington, Sept 29 (PTI) The Bush administration will pump-in a whopping USD 700 billion in a far-reaching three- stage bail out plan to rescue the nation's ailing financial system from bad debts, according to a Bill unveiled by lawmakers.
The 110-page Bill, intended to ease a growing credit
crisis, came after a frenzied week of political squabbling
that culminated in an agreement between the Bush
administration and Congress early Sunday.
Speaker of the House of Representatives, Nancy Pelosi
said she hopes the House will take up the bill today. Senate
Majority Leader Harry Reid said he believes the Senate can
move on the legislation by Wednesday.
Pelosi said the provisions added by Congress will
protect taxpayers from having to pay for the bailout.
"We sent a message to Wall Street - the party is over,"
Pelosi, said, indicating that the Congress would rein-in the
high-flying financiers who chased big profits through reckless
investments.
President George W. Bush, in a statement Sunday, said
"this is a difficult vote, but with the improvements made to
the bill, I am confident Congress will do what is best for
our economy by approving this legislation promptly."
The USD 700 billion will not be given to the Treasury in
one go to bail out the troubled financial institutions.
The distribution of money will come about in three
stages, the first of which will be in the magnitude of USD 250
billion followed by a tranche of USD 100 billion and finally
of USD 350 billion.
The core of the bill is based on Treasury Secretary
Henry Paulson's plea for authority to purchase troubled assets
from bankrupt financial institutions so banks can resume
lending and so the credit markets can resume operations
normally.
The timing of the announcement of the finer details of
the legislation was said to be critical all through the day
keeping in mind the opening of the financial markets in the
Asia-Pacific region.
Senior lawmakers are stressing that although Treasury
Secretary Henry Paulson will be given authority and
flexibility, there will be tough oversight by the Congress,
something the Bush administration wanted to avoid.
Key negotiators for the financial rescue plan are busy
trying to line up votes on Capitol Hill to support the accord
they reached.
House Majority Leader Steny Hoyer said he believes that
a majority of representatives on both sides of the aisle can
and will support the bill, C.N.N. reported.
Congressional staffers have maintained that the
Financial Stabilisation Plan has a strong tax payer base, with
one of the chief intentions being that of insulating Main
Street from Wall Street.
And in the process of federal government reinvestment in
the troubled financial markets, lawmakers have taken pains to
see that some of the excesses that contributed to the mess are
not going to be rewarded. PTI SK
BK
The 110-page Bill, intended to ease a growing credit
crisis, came after a frenzied week of political squabbling
that culminated in an agreement between the Bush
administration and Congress early Sunday.
Speaker of the House of Representatives, Nancy Pelosi
said she hopes the House will take up the bill today. Senate
Majority Leader Harry Reid said he believes the Senate can
move on the legislation by Wednesday.
Pelosi said the provisions added by Congress will
protect taxpayers from having to pay for the bailout.
"We sent a message to Wall Street - the party is over,"
Pelosi, said, indicating that the Congress would rein-in the
high-flying financiers who chased big profits through reckless
investments.
President George W. Bush, in a statement Sunday, said
"this is a difficult vote, but with the improvements made to
the bill, I am confident Congress will do what is best for
our economy by approving this legislation promptly."
The USD 700 billion will not be given to the Treasury in
one go to bail out the troubled financial institutions.
The distribution of money will come about in three
stages, the first of which will be in the magnitude of USD 250
billion followed by a tranche of USD 100 billion and finally
of USD 350 billion.
The core of the bill is based on Treasury Secretary
Henry Paulson's plea for authority to purchase troubled assets
from bankrupt financial institutions so banks can resume
lending and so the credit markets can resume operations
normally.
The timing of the announcement of the finer details of
the legislation was said to be critical all through the day
keeping in mind the opening of the financial markets in the
Asia-Pacific region.
Senior lawmakers are stressing that although Treasury
Secretary Henry Paulson will be given authority and
flexibility, there will be tough oversight by the Congress,
something the Bush administration wanted to avoid.
Key negotiators for the financial rescue plan are busy
trying to line up votes on Capitol Hill to support the accord
they reached.
House Majority Leader Steny Hoyer said he believes that
a majority of representatives on both sides of the aisle can
and will support the bill, C.N.N. reported.
Congressional staffers have maintained that the
Financial Stabilisation Plan has a strong tax payer base, with
one of the chief intentions being that of insulating Main
Street from Wall Street.
And in the process of federal government reinvestment in
the troubled financial markets, lawmakers have taken pains to
see that some of the excesses that contributed to the mess are
not going to be rewarded. PTI SK
BK
