ABC's Charlie Herman reports: The one page “Agreement on Principles” from the Senate Banking Committee released at the White House outlines four major categories for the relief package.
Funding: Only $250 billion will be initially funded immediately and an additional $100 billion will be provided when the Treasury Secretary asks for it. The final $350 billion can be denied. To do so, Congress would need to make a “joint resolution of disapproval.”
Taxpayer protection: Treasury Secretary is to reduce inappropriate executive compensation for companies that participate. Taxpayers are to receive some sort of equity (shares?) in the companies that participate. And most of any profits are to be directed to pay down then national debt.
Oversight: Similar to the Dodd plan, an oversight board that can issue cease and desist orders; regular reports to Congress but no timeframes specified; a new Inspector General to monitor the Treasury Secretary; GAO audits of funds.
Struggling Homeowners: The government is required to modify mortgages which it owns or controls outright to prevent foreclosures and where possible coordinate efforts to modify loans it does not control. Also, a portion of future profits from the plan are to be used to fund existing affordable housing programs.