Quote:
Originally Posted by 8ballrollin
Well, at least in the banking sector.
Here are the highlights from the Dodd bill...
- Treasury (you and me) take an equity stake equal to the purchase price of the distressed assets
- If it's a private company, government takes senior debt position
- Oversight board managing the $700B. Made up of the chairmen of the Federal Reserve, FDIC, SEC and two corp execs.
- If CEO of banks take undue risks, the government can penalize their compensation
Frank is co-opting this into his plan and some form of it will come out on the other side after the negotiations with Paulson.
http://bloomberg.com/apps/news?pid=2...lRg&refer=home |
Frankly, Dodd's plan makes a whole lot more sense than anything else that has been drafted so far. It is akin to what the government did after the S&L crisis (and that actually worked pretty well).
I think Paulsen's plan may be a disaster.