The U.S. Senate endorsed the $700 million bailout plan by a margin of 74 to 25 in favor. Here are some of the highlights of the Senate Approved Plan as reported in the October 2, 2008 Wall Street Journal (Page A3):
“Like the deal rejected by the House, the Senate bill includes:
$700 BILLION FOR BAD ASSETS: $250 billion immediately, $100 billion on Treasury Secretary’s request $350 billion subject to congressional joint resolution.
EQUITY STAKES: Participating companies must provide non-voting warrants to Treasury to cover losses, administrative costs and any profits they make.
EXECUTIVE COMPENSATION: Treasury secretary to set limits on executive compensation in participating companiesl
FORECLOSURE PREVENTION: More efforts to modify risky mortgages, compulsory modification for loans owned and controlled by federal agencies.
OVERSIGHT BOARDS: Creates board with ‘cease and desist’ authority, establishes special Inspector General.
But it also has some provisions not considered by the House:
MARKET-MARKET: SEC has to study mark-to-market accounting standards and their effects on balance sheets and quality of financial information.
FDIC INSURANCE: Raises federal deposit insurance limits from $100,000 to $250,000 until Dec. 31, 2009. ”
TWO RELATED DOCUMENTS: