Dodd’s Alternative to the Bail Out Plan

I’ve just finished reading the key points to Senator Chris Dodd’s alternative to the bail out plan and I have to say I agree with the folks like Paul Krugman who are saying this is more like it — it’s a “step in the right direction.” The thing is, as Krugman points out:

Paulson displayed a lot of arrogance here — he basically marched in and said Daddy knows best, don’t worry your pretty little heads about the details. He offered no, zero, zilch explanation of how the plan was supposed to work — just “it’s a crisis and we need to act now.” And he overreached, especially with that demand for immunity from any review.

Dodd’s plan includes the following key provisions:

* Authority for bankruptcy judges to restructure mortgages for homeowners facing foreclosure. This was considered a poison pill in a housing bill that passed Congress earlier this summer, but it has gained much more currency now that Washington wants to bail out Wall Street.

* A provision that would require the Treasury to take a 65 percent portion of 20 percent any profits it makes from the newly purchased assets and put it into the federal government’s HOPE program, an affordable housing program.

* An oversight board that not only includes the chairman of the Federal Reserve and the SEC, but congressionally appointed, non-governmental officials.

* Limits on executive compensation. This is a major stumbling point for Paulson in his negotiations with Congress, but cracking down on Wall Street executive salaries will be a major selling point for lawmakers. Dodd and Frank have put in place what’s known as a “claw back” provision aimed at revoking compensation that executives received based on fraudulent claims.

* An independent inspector general to investigate the Treasury asset program, appointed by the president.

Senator Chris Dodd spoke to CBS today. Watch it here (h/t Newshoggers):

Dodd said on CBS, “accountability is something we should all care about.” Exactly.

The full text of Dodd’s plan is here. The Bush administration has agreed to “include mortgage help for beleaguered homeowners” however they are not so willing to budge on “other issues, including “golden parachutes” for executives who benefit from the unprecedented rescue.”

Why on earth should the taxpayers fund “golden parachutes” for these corporate ho’s who have raped and pillaged America with the help of the Bush administration?

Incase everyone isn’t clear how we got into this mess in the first place the answer is clear: GREED… “Greed, as it periodically does when traders and bankers forget the lessons of the past, clouded judgments.” 

Sign MoveOn’s Wall Street petition if you haven’t yet. It’s time to let Congress know, enough is enough. The corporate greed has got to stop, if we’re going to have anything left to America for our children.

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4 Responses to Dodd’s Alternative to the Bail Out Plan

  1. Good points. I was really down on Dodd the last few days, but I think I may have passed judgment too soon. I agree that this is a step in the right direction. We must learn that giving Bush money for anything is usually a disaster.

  2. Apple Snyder says:

    See the 3 minute video, “I’m a Little Confused” on YouTube.  Here’s the link: http://www.youtube.com/watch?v=_nHR7iBNXAQ

  3. taxme says:

     
    Senator Dodd said this on July 13, 2008 as part of a CNN interview.The facts are that Fannie and Freddie are in sound situations,” Dodd said. “They have more that adequate capital, in fact more than the law requires.” Senator Dodd and Senator Obama received the most money from these two financially sound intuitions, Senator Dodd received a special dealon his mortague from Countrywide CEO, oh no they went under too!I would run from any plan Dodd and Obama put together neither of these two have any idea on how to help us.. they only take care of themselves.The mismanagement of Fannie and Freddie is at the core of the entire melt down as well as the bad decision to allow banks and brokage houses to combine their money and risk everything we have.Obama has no record of making a decision on any issue and now we find him at the top of the biggest financial mess in history, I bet he votes present! 

  4. Pingback: Alternatives to the 700bn Bail Out Plan « Creepy News