The public comment period for this legislation has now ended.

TITLE I - Authorizing the Treasury Department to Buy Mortgage-Related Assets

Sec. 21. Definitions. (5 Comments) subscribe to the comments feed

For purposes of this Act, the following definitions shall apply:

  1. BOARD.The term "Board" means the Board of Governors of the Federal Reserve System.

  2. COMPTROLLER GENERAL.The term "Comptroller General" means the Comptroller General of the United States.

  3. CORPORATION.The term "Corporation" means the Federal Deposit Insurance Corporation.

  4. FINANCIAL INSTITUTION.The term "financial institution" means

    1. any institution, including banks, savings associations, credit unions, securities broker and dealers, and insurance companies, having significant operations in the United States; and

    2. upon the determination of the Secretary, in consultation with the Chairman of the Board of Governors of the Federal Reserve System, any other institution that the Secretary determines necessary to promote financial market stability.

  5. RESIDENTIAL MORTGAGE LOAN.The term "residential mortgage loan" means a consumer credit transaction that is secured by the principal residence of a consumer.

  6. SECRETARY.The term "Secretary" means the Secretary of the Treasury.

  7. TROUBLED ASSETS.The term "troubled assets" means

    1. residential or commercial mortgages, and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case were originated or issued on or before March 14, 2008; and

    2. upon the determination of the Secretary, in consultation with the Chairman of the Board of Governors of the Federal Reserve System, any other financial instrument, as the Secretary determines necessary to promote financial market stability.

  8. UNITED STATES.The term "United States" means the States, territories, and possessions of the United States and the District of Columbia.

5 comments on Sec. 21. Definitions.

  • 21(g)(1) This is overly broad and would include credit default swaps related to mortgage backed securities, the market for which actually dwarfs the entire US stock market. These are speculative vehicles, analogous to someone purchasing life insurance on an unrelated person. They are not securitized mortgages and should not be covered by such an act.

    21(g)(2) This basically gives the Secretary of the Treasury the ability to define "troubled assets" as he pleases and indeed makes the definition in 21(g)(1) irrelevant. It should be struck and if need be the definition (1) can be expanded to compensate.

    posted by Anonymous at September 24, 2008

  • Section G (troubled assets) "any other financial instument" so... we are giving them $700,000,000,000 to play in the entire financial and equity market with no accountability. You really think this will restore the confidence you seek? In my view this is equivalent to a terrorist attack!

    posted by Anonymous at September 27, 2008

  • Remove section 21(d)(2). This is too much latitude to treasury and could include too many Foreign Companies that come begging. NO FOREIGN BANK BAILOUT

    21(g)(2) should restrict troubled assets to Mortgages only. No studient loans, or car loans etc. This is way too broad.

    posted by Judith Weller at September 28, 2008

  • NO FOREIGN BANK BAILOUTS!

    Hell, it is our money! We don't want you bailing out foreign banks. I don't want you bailing out any banks but I was never given the opportunity to vote on this issue.

    I can assure you that I will vote in November, along with hundreds of millions of my fellow citizens. It is time we put citizens back in Washington DC. We have found out that our elected democratic congress has done nothing in two years and the speaker of the house has capitulated to the Bush administration way too much.

    I just hope there is a national election. We the people worry about marshal law being imposed to keep the dictator in office.

    Ladies and Gentleman, may I refer you to the Declaration of Independence, a document vital to our country. A document held dear by all true patriots of the United States of America.

    You, the Congress, the Executive branch and the Judicial Branch may try and take our country from "we, the people" but our strength is still water which runs very deep.

    posted by Craig Bryant, Citizen at September 28, 2008

  • I agree that this provides overbroad authority to Treasury to buy up paper we haven't even considered. Let's limit this bill to mortgages an mortgage backed securities on residential 1-4 unit dwellings. No commercial paper, no CDO's, no Swaps, etc.

    posted by kathy at September 28, 2008
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