The Bailout: King Paulson gets to control every aspect of the bailout and reward the wildest speculators

New York Times- Treasury Would Emerge With Vast New Powers
Forbes - Sold to US taxpayers for $700B: banks' bad assets
LA Times- Banks love bailout, hate credit card curbs
Bloomberg - Asian Stocks Fall on Concern U.S. Rescue Won't Bolster Growth
New York Times- House Rejects Bailout Package, 228-205; Stocks Plunge
Politico- McCain takes credit for bill before it loses
TomDispatch.org - Pentagon Bailout Fraud



Specific Details of The Bailout

The term ‘‘financial institution’’ means any institution, including,
but not limited to, any bank, savings association,
credit union, security broker or dealer, or insurance
company

TROUBLED ASSETS.—The term ‘‘troubled assets’’ means—
(A) residential or commercial mortgages
and any securities, obligations, or other instruments that are based on or related to such
mortgages, that in each case was originated or issued on or before March 14, 2008, the
purchase of which the Secretary determines promotes financial market stability; and
(B) any other financial instrument that the Secretary, after consultation with the Chairman
of the Board of Governors of the Federal Reserve System, determines the purchase of which
is necessary to promote financial market stability, but only upon transmittal of such determination,
in writing, to the appropriate committees of Congress.

AUTHORITY.—The Secretary is authorized
to establish a troubled asset relief program (or ‘‘TARP’’) to
purchase, and to make and fund commitments to purchase,
troubled assets from any financial institution, on such terms
and conditions as are determined by the Secretary, and in
accordance with this Act and the policies and procedures
developed and published by the Secretary.

(c) NECESSARY ACTIONS.—The Secretary is authorized to
take such actions as the Secretary deems necessary
to carry out the authorities in this Act, including, without
limitation, the following
(1) The Secretary shall have direct hiring authority with
respect to the appointment of employees to administer this Act.
(2) Entering into contracts, including contracts
for services authorized by section 3109 of title 5,
United States Code.
(3) Designating financial institutions as financial agents
of the Federal Government, and such institutions shall
perform all such reasonable duties related to this Act
as financial agents of the Federal Government as may
be required.
(4) In order to provide the Secretary with the
flexibility to manage troubled assets in a manner designed
to minimize cost to the taxpayers, establishing vehicles
that are authorized, subject to supervision by the Secretary,
to purchase, hold, and sell troubled assets and issue obligations.
(5) Issuing such regulations and other guidance
as may be necessary or appropriate to define terms
or carry out the authorities or purposes of this Act.

Secretary shall publish program guidelines, including the
following:
(1) Mechanisms for purchasing troubled assets.
(2) Methods for pricing and valuing troubled
assets.
(3) Procedures for selecting asset managers.
(4) Criteria for identifying troubled assets for
purchase.

(e) PREVENTING UNJUST ENRICHMENT.—In making
purchases under the authority of this Act, the Secretary
shall take such steps as may be necessary to prevent unjust
enrichment of financial institutions participating in
a program established under this section, including by preventing
the sale of a troubled asset to the Secretary at
a higher price than what the seller paid to purchase the
asset. This subsection does not apply to troubled assets
acquired in a merger or acquisition, or a purchase of assets
from a financial institution in conservatorship or receivership,
or that has initiated bankruptcy proceedings
under title 11, United States Code.

(2) GUARANTEES.—In establishing any pro- gram under this subsection, the Secretary may develop guarantees of troubled assets and the associated premiums for such guarantees. Such guarantees and premiums may be determined by category class of the troubled assets to be guaranteed. (3) EXTENT OF GUARANTEE.—Upon request of financial institution, the Secretary may guarantee timely payment of principal of, and interest on, troubled assets in amounts not to exceed 100 per- of such payments. Such guarantee may be on terms and conditions as are determined by the Secretary, provided that such terms and conditions consistent with the purposes of this Act.

(b) MANAGEMENT OF TROUBLED ASSETS.—The Secretary shall have authority
to manage troubled assets purchased under this Act, including revenues and portfolio
risks therefrom.

(c) SALE OF TROUBLED ASSETS.—The Secretary
may, at any time, upon terms and conditions and at a
price determined by the Secretary, sell, or enter into securities
loans, repurchase transactions, or other financial
transactions in regard to, any troubled asset purchased
under this Act.

(c) CONSENT TO REASONABLE LOAN MODIFICATION REQUESTS.—Upon any request arising under existing investment contracts, the Secretary shall consent, where appropriate, and considering net present value to the taxpayer, to reasonable requests for loss mitigation measures, including term extensions, rate reductions, principal write downs, increases in the proportion of loans within a trust other structure allowed to be modified, or removal of other limitation on modifications.

SEC. 110. ASSISTANCE TO HOMEOWNERS.
(1) IN GENERAL.—To the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed securities, and other assets secured by residential real estate, including multifamily housing, the Federal property manager shall implement a plan that seeks to maximize assistance homeowners and use its authority to encourage servicers of the underlying mortgages, and con- sidering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures. (2) MODIFICATIONS.—In the case of a residential mortgage loan, modifications made under paragraph (1) may include— (A) reduction in interest rates; (B) reduction of loan principal; and (C) other similar modifications. (3) TENANT PROTECTIONS.—In the case of mortgages on residential rental properties, modifications made under paragraph (1) shall ensure— (A) the continuation of any existing Federal, State, and local rental subsidies and protections; and