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 “ ” 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.