Friday, October 3, 2008

Hidden in the Emergency Economic Stabilization Act of 2008

http://www.dailypauhttp://www.http:_ (
Section 203 of the Financial Services Regulatory Relief Act of 2006 is  
amended by striking ‘‘October 1, 2011’’ and inserting ‘‘October 1, 2008’’.
They changed the effective date from 2011 to yesterday!
 ( The changes eliminated the requirement for
banks to keep reserves of cash on  hand to cover deposits, they abolished the
Federal Reserve’s Earnings  Participation Account, they granted the ability for
the Fed to create their own  rules for distributing their earnings, and they
granted the ability to make  payments to foreign banks.  
These things were not scheduled to go into effect for 3 more years. Unclear  
is why they needed these changes at all, the other is why they need them  now.
Continued at: _http://www.dailypauhttp://www.http:_
More problems with the bill & easy action from Public Citizen:
The bill's bailout provisions provide little oversight of the Treasury's  
vastly expanded powers and lack badly needed consumer protections:
- The Secretary of the Treasury receives sweeping authority with virtually  
no restraints on how to exercise it
- The bill contains no provisions to help  troubled homeowners stay in their
- Congress has removed a provision  that would have allowed judges to modify
mortgages for homeowners in bankruptcy  - the only significant consumer
protection in the bill.
- The provision  governing executive compensation is nearly meaningless
because it applies only  in narrow circumstances, gives the Secretary of the
Treasury broad discretion in  crafting most of the restrictions, and allows the
Secretary to narrow the  provision's applicability even further.
- The judicial review provisions are  scarcely better than in the original
Treasury proposal.
I, along with Public Citizen, urge you to reject the bailout bill and take  
the time to assess other approaches such as providing direct aid to homeowners.
 If Congress does pass some form of the Treasury proposal, I urge it to slow
down  and ensure that the bill contains proper oversight, accountability and
judicial  review provisions.
Easy action expressing this at:

You can call the Capitol Switchboard at 800-473-6711
or 202-224-3121 to ask to be transferred to the offices  of
your Representative.
Easy action to say, "No to the Bailout Legislation!" at:
_ (

In this one, you write your own message explaining what you
feel is wrong with the current bill, or just send their one line.
Oppose the $700 Billion  Mortgage Bailout

An additional article: Remarks by former Treasury Secretary Paul O'Neill:  
Calls Bailout plan "crazy":

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