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The Meeting

September 25, 2008 1:24 PM

CAPITOL HILL -- The bipartisan group of nine members of the House and Senate who met Thursday for more than two hours, came to an agreement on four basic principles to include in the Wall Street bailout bill -- but a big sticking point remains on the 4th of these principles: what to do about homeowners facing foreclosure.

The meeting was run by Sen. Chris Dodd, D-Conn., chair of the Senate Banking Committee.

House Financial Services Chairman Barney Frank, D-Mass., said after the meeting that the group added "a couple of things that will make people legitimately feel better about voting for the bill."

The group broadly agreed there was a need for:

1) a panel to conduct oversight of how the vast sums of taxpayer cash are spent;
2) taxpayer protections -- a way for taxpayers to receive some equity, through warrants, in the companies receiving government aid;
3) limits on executive compensation for officers of the companies receiving government aid -- regarding golden parachutes, bonuses based on erroneous earnings (or "clawback"), and tax deductions for bonuses;
4) but a source tells ABC News that there was a problem resolving the issue of how to help homeowners facing foreclosure. Democrats want to re-write bankruptcy laws to enable judges to re-negotiate mortgages; Republicans do not.

A Democratic source says that Sen. Judd Gregg, R-N.H., ranking Republican on the Senate Budget Committee, and Sen. Bob Bennett, R-Utah, the No. 2 Republican on the Senate Banking Committee, advocated for the Bush administration's argument that the bill needs to be passed as quickly and as cleanly as possible.

"I now expect we will, indeed, have a plan that can pass the House, pass the Senate, be signed by the president and bring a sense of certainty ... that is still roiling the markets," said Bennett after the meeting.

- jpt

September 25, 2008 | Permalink | Share | User Comments (28)

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Senator Obama should be very cautious dealing with this "crisis" It doesnt feel quite right for the President to call attention to the crisis, then have his party candidate (John McCain) and the opposition candidate meet(barack Obama) ANd when they arrive, the deal changes?
HMMM... Lets see, now the Republicans do not support this proposal and the democrats are left to fight FOR the plan... Is this what everybody else sees? Or is just me? So, now the right wing doesnt like the proposal that came from their own people. And the Democrats are not supposed to see what is happening and will go for this bait and switch... Somehow, I feel like maybe there are more twists and turns that will position the Obama camp on the bad side of everything, when of course they are getting sucked in just to play the game... Maybe they should announce that they are not going to repond to the scapegoating and smear tactics which are getting to be so big they reveal a party that will stop at nothing to get 4 more years. 4 more years of middle class infrastructure damage.
Is this just a natural market correction that is being hyped? I dont know, who does? thoise that have the facts are the same ones who want to cause mountains of inflation by printing this enormous sum of money. Is it a correct policy to allow the Repubs their depression? Dating back years people who no longer get unemployment are not counted in unemployment statistics... Our unemployment rate is higher than stated. So the choice is NOT to deepen what already is a fact.
700 Billion is a monstrous amount of money. How many houses is that?? Something isnt right...

Posted by: Curtis | Sep 26, 2008 2:09:26 AM

Don't forget sleazy Reid tacking on a shale oil ban into the bailout. Thank heavens the House Repubs are on this. I'm not down with Frank and Dodd doing anything on behalf of me as a taxpayer.

Posted by: Susan G | Sep 26, 2008 1:52:25 AM

Let me chime in, as I have the insufferable position of having to live in the state that keeps electing Crooked Chris Dodd.
McCain (and Obama, although you wouldn't know it by looking at him) are senators running for president. McCain did the right thing and hustled back to Washington. Obama's response? "Call me if you need me." Hello??? That's leadership? Can this guy get on the record of voting for something with a "yes" or "no" vote? "Present" doesn't cut it here pal.

Posted by: Candy in CT | Sep 26, 2008 12:26:17 AM

It very simple Bush wants to bail out the CEOs. Main street doesn't count in their world.

The CEOs will still walk away rich no matter what happens. Main street will not.

I don't get it. Even on Charlie Rose last week the experts said this should have been done years ago cleaning up wall street.

Posted by: Liz | Sep 25, 2008 7:46:22 PM

@ryan: Simply put: Obama called to try to get McCain to sign up to a joint statement. If McCain signed up, Obama was going to put on commercials claiming to be the uniter and saving the bill. If McCain didn't sign up, Obama would put out a commercial claiming he tried to save the bill but McCain wouldn't cross the aisle to help.

Obama was playing a cheap deuce for a little more poll bounce. McCain trumped him and once again, superior strategy showed what an amateur Obama is in the Big Game.

Nice try. No sale.

Whatcha got now?

Posted by: len | Sep 25, 2008 4:46:56 PM

"By tomorrow you will hear that he single handedly wrestled the Congress into an agreement on his Blackberry."

And how the taxpayers will greet him as a liberator.

Posted by: Ryan C | Sep 25, 2008 3:31:06 PM

"By tomorrow you will hear that he single handedly wrestled the Congress into an agreement on his Blackberry."
Posted by: Leonard Peltier | Sep 25, 2008 2:13:09 PM
_________________

Obama?


Doubtful!

Posted by: OPEN YOUR EYES | Sep 25, 2008 3:02:34 PM

Welcome to the National Socialist Republic of America.

Posted by: mara | Sep 25, 2008 2:32:29 PM

Still chuckling at the Reid quotes where he says the bill will not pass if McCain doesn't vote for it. Now they might have a general agreement, but House Republicans are not onboard. If the Dems push it and pass it with a partisan vote, the House Republicans can benefit from the calmed markets, but use the weapon of "socialist bailout" to hammer Dems with for years to come. Congress NEEDS McCain to show up to give House Republicans cover. Even with a general framework in place, the bill does not get passed without McCain getting Republicans in line. Brilliant brilliant move by McCain.

Posted by: mtwght | Sep 25, 2008 2:30:32 PM

The very idea of John McCain descending on the Senate for the first time since April brought this agreement about!

Barney Frank said it best, "we're trying to rescue the economy, not the McCain campaign." Palin/McCain become more embarassing daily.

Posted by: Brooklyn Democrat | Sep 25, 2008 2:18:40 PM

Who wants to see a fair Campaign?
If Pesident Bush, does not interfere in Senate meetings, who agrees that the two candidates should act, as a Presiding President, and stay away from the Senate?

How about calling your state Senator?
As O'Reilly says, 'Fair and Balaced'.
Hah.

Posted by: historyforgotten | Sep 25, 2008 2:17:50 PM

A re-write of the Bankruptcy Law is also a major bone of contention.
Hopefully, Senator McCain will help get these issues resolved and fast.

Ha, you havn't been paying attention. McCain is an economic moron...what will he do yell at the bill?

Posted by: Super Skrull | Sep 25, 2008 2:16:41 PM

Who wants to see a fair Campaign?
If Pesident Bush, does not interfere in Senate meetings, who agrees that the two candidates should act, as a Presiding President, and stay away from the Senate?

Posted by: historyforgotten | Sep 25, 2008 2:14:22 PM

jhw539,

By tomorrow you will hear that he single handedly wrestled the Congress into an agreement on his Blackberry.

Posted by: Leonard Peltier | Sep 25, 2008 2:13:09 PM

"With all of his drama, it's interesting that we don't see how Senator McCain's emergency campaign suspension contributed to this bipartisan solution."

I note that he hasn't even managed to elbow his way into a photo-op yet.

The reporting Tuesday was that Congress was already close to bipartisan agreement to how to fix the disaster of a bill that the Administration tried to ram through last month. John McCain (and Obama) have absolutely zero role in working on this bill. It is not in their committee or area of expertise.

Posted by: jhw539 | Sep 25, 2008 2:11:08 PM

It's all 'save America patriotism' until there is a possibility they might knock some interest off of the mortgage loan you suckered someone into.

Posted by: Leonard Peltier | Sep 25, 2008 2:11:02 PM

How much Bank scandel actually follows McCain? Well, He was investigated and largely exonerated in a political influence scandal of the 1980s as a member of the 'Keating Five'. His connection to Rick Davis, who imbezzeled money from Fannie Mae, as early as last Month. And was one of his sons, who was a bank auditor, mysteriously left his job , two months before the bank closed.
I have a question, about any other organizations, he may be a part of.

Americans may be curious to know which one. I suggest transparency be implemented. At least that is McCains platform. It still is, Right?

And guess what, about Todd Palin?
:)
Of course, Sarah could not join. But she could speak at group meetings. She's a Female. Only Men join this group. Women join the OTHER ONE.

Is someone talking?
Is the light to bright?
Who wants the answers?

Posted by: historyforgotten | Sep 25, 2008 2:10:42 PM

hadenough: ""The meeting was run by Sen. Chris Dodd, D-Conn., chair of the Senate Banking Committee."

Too Laugh! dodd should have been run out of the senate for his shady deals with countrywide. "

There's enough comedy to go around. It's already been pointed out that McCain probably *had* to suspend his campaign since half his staff has to work the phones for their "past" financial giants. For example, his campaign manager who was getting $15k a month from Fannie and Freddie up to last month (and of course is on the record lying about it). And the Wall Street Journal, a steady conservative (true conservative, not religious neo-con voice) pointed out he could trace the genesis of the crisis without leaving his "straight talk" express...

Posted by: jhw539 | Sep 25, 2008 2:06:37 PM

We need to know the composition, structure, and rules of the oversight panel. This is a major sticking point, and one the American people are entitled to know about.

A re-write of the Bankruptcy Law is also a major bone of contention.

Hopefully, Senator McCain will help get these issues resolved and fast.

Posted by: Captain America | Sep 25, 2008 2:00:05 PM

dl, I agree.

Posted by: gp | Sep 25, 2008 1:58:20 PM

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