- Executive pay limits are a deception. A distraction for Congress to show the electorate "look what we did" when those that perpetrated this crisis should be removed from their position and prosecuted to the full extent of the law. It is a deception. Besides if the Nation receives equity in the company why wouldn't you want the best executives money could buy. It is a deception.
- Oversight as described by Franks is a sham. The oversight consists of a congressionally selected board that will be informed of the Fed transactions AFTER completion. These transactions, supposedly, will be made public so that anyone can complain. This is better than nothing but with no recourse but to whine to the public about the Feds paying too much or too little for complex financial instruments there is little hope this will stop the Bush administration from doing whatever they have planned. Do you think they may use this as a political tool? They have used everything else as one.
There is more.
- No provisions to ensure penalties for those who fraudulently represented and sold financial instruments nationally and internationally. Grossly enriching themselves at the expense of our Nation and now it's taxpayers. Again, they should be prosecuted to the full extent of the law.
- Vast rewards for those who invested in and managed recklessly run financial institutions when the managers, preferred investors and board of directors KNEW what was happening. This will penalize the institutions that abide by the law. This is the real test. If law breakers and reckless behavior is awarded and those that abide by the law are penalized, multi-national corporations and financial institutions will learn that this type of behavior has NO downside and billions of upside.
- No industry regulation. If it is not attached to this money Bush will veto it. McCain will too, if he becomes President.
It is time to think outside the box.
Gather financial gurus and let them work out a real plan. Call for a special session to vote on the legislation when it is ready.
Make sure that EVERY Republican votes for it.
We need to be creative. Such as special financial instruments issued and paid for by the feds that assume these overvalued assets from financial institutions but is unsecured long term debt. This will not count against the financial institutions multiple or ratio but if not repaid (with minor interest) in a reasonable time it is converted into equity.
Or they can use the $700b to bypass the reckless financial institutions and supply the law abiding ones cash to refinance the loans/homes that the reckless ones will have to fire sale. This is what a free market would do.