TITLE I - Troubled Assets Relief Program
Sec. 101. PURCHASES OF TROUBLED ASSETS. (19 Comments)
-
OFFICES; AUTHORITY.
-
AUTHORITY.The Secretary is authorized to establish the Troubled Asset Relief Program (or TARP) to purchase, and to make and fund commitments to purchase, troubled assets from any financial institution, on such terms and conditions as are determined by the Secretary, and in accordance with this Act and the policies and procedures developed and published by the Secretary.
-
COMMENCEMENT OF PROGRAM.Establishment of the policies and procedures and other similar administrative requirements imposed on the Sec retary by this Act are not intended to delay the commencement of the TARP.
-
ESTABLISHMENT OF TREASURY OFFICE.
-
IN GENERAL.The Secretary shall implement any program under paragraph (1) through an Office of Financial Stability, established for such purpose within the Office of Domestic Finance of the Department of the Treasury, which office shall be headed by an Assistant Secretary of the Treasury, appointed by the President, by and with the advice and consent of the Senate, except that an interim Assistant Secretary may be appointed by the Secretary.
-
CLERICAL AMENDMENTS.
-
TITLE 5.Section 5315 of title 5, United States Code, is amended in the item relating to Assistant Secretaries of the Treasury, by striking (9) and inserting (10).
-
TITLE 31.Section 301(e) of title 31, United States Code, is amended by striking 9 and inserting 10.
-
-
-
-
CONSULTATION.In exercising the authority under this section, the Secretary shall consult with the Board, the Corporation, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, and the Secretary of Housing and Urban Development.
-
NECESSARY ACTIONS.The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation, the following:
-
The Secretary shall have direct hiring authority with respect to the appointment of employees to administer this Act.
-
Entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code.
-
Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this Act as financial agents of the Federal Government as may be required.
-
In order to provide the Secretary with the flexibility to manage troubled assets in a manner designed to minimize cost to the taxpayers, establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase, hold, and sell troubled assets and issue obligations.
-
Issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities or purposes of this Act.
-
-
PROGRAM GUIDELINES.Before the earlier of the end of the 2-business-day period beginning on the date of the first purchase of troubled assets pursuant to the authority under this section or the end of the 45-day period beginning on the date of enactment of this Act, the Secretary shall publish program guidelines, including the following:
-
Mechanisms for purchasing troubled assets.
-
Methods for pricing and valuing troubled assets.
-
Procedures for selecting asset managers.
-
Criteria for identifying troubled assets for purchase.
-
-
PREVENTING UNJUST ENRICHMENT.In making purchases under the authority of this Act, the Secretary shall take such steps as may be necessary to prevent unjust enrichment of financial institutions participating in a program established under this section, including by preventing the sale of a troubled asset to the Secretary at a higher price than what the seller paid to purchase the asset. This subsection does not apply to troubled assets acquired in a merger or acquisition, or a purchase of as sets from a financial institution in conservatorship or receivership, or that has initiated bankruptcy proceedings under title 11, United States Code.
19 comments on Sec. 101. PURCHASES OF TROUBLED ASSETS.
-
Totally unjuistified,unaccountable control over the public money.
posted by Robert Price-taxpayer at October 1, 2008
This is basically a blank check, for the bail out!!!! -
"the secretary" is all over this thing. why would anyone trust a treasury secretary like paulson? just a couple of weeks ago he was telling everyone how sound the economy was and now he's yelling "WE'RE ALL GONNA DIE IF YOU DON'T GIVE ME THIS $$".
posted by another taxpayer at October 1, 2008
please remember, this is a man who learned at the feet of RM Nixon as did Dick Cheney. why would anyone trust him to do what's right for regular Americans? -
They passed this thing tonight - I am just sick! My own Senators voted for it.
posted by Sara D. at October 1, 2008 -
The above comments are justified. Now you gotta contact your rep to tell him this bill is unacceptable.
posted by Anonymous at October 1, 2008
Should use the Soros plan instead (ft.com) to (more or less) review each bank's books and recapitalize as needed taking shares in exchange.
This supposed bailout will fail and they will keep demanding more installments using same fearmongering tactics. Same as Hitler in Reichstag burning demanding emergency powers - we know the result. -
http://uscode.house.gov/uscode-cgi/fa...
posted by Anonymous at October 1, 2008
5 USC Sec. 3109 -
We should trust Sec. Paulson just like we should trust the current administration to regulate itself on any matter that is even remotely relatable to national security, for example wire taps, torturing prisoners, no-bid contracts in Iraq, ect. This is just another raping of the American taxpayer. The republican fear machine is so good at this manuever, scare the hell out of people with carefully selected predictions that suit their agenda, accuse every dissenter of being un-patriotic, and empty the American tax payer's wallet into corporate vaults, all with the blessing of the public. Its sheer genius unseen since Lenin, Hitler, Castro, and we all know how well their patriotic actions turned out.
posted by Mike H. at October 2, 2008 -
We should not be purchasing the troubled assets. Why do we get stuck with them. I don't buy this BS that they will be OK and "we the people" will make money. The Federal(sic) Reserve already has them and they don't want them. Why do we? I propose that we audit the banks that have these traunches of bad debit, insure the debt and use the FDIC to monitor the banks performance. No money forked over, just notes that are due back to us at some later date. I believe this is the plan that former FDIC President Issac has proposed. Why have we not spoken with him or any others whom are experienced in these matters?
posted by STEPMAN at October 2, 2008 -
Unbelievable. Giving this much power to the Secretary of the Treasury is a guarantee for disaster.
posted by Elaine at October 2, 2008
Additionally, why should the American people be forced to buy troubled assests where who knows who determines their price and value?
How could anyone who isn't in favor of Socialism and government tyranny even begin to approve this legislation? -
We (taxpayers) should not be purchasing these troubled assets. At most we should be buying preferred stock in the troubled institutions so they can recapitalize, or for a fee insure the assets. Government is can't manage tax dollars, how is it going to manage a real estate empire.
posted by Todd at October 2, 2008
As for all the comments about this being caused by the Bush administration and the Republicans. Let's not forget that Barney Frank (D-Mass.), the Congressional Black Caucus, and Christopher Dodd (D-Conn.) for years pushed Fannie and Freddie to make banks and mortgage companies lend money to people who could not afford the mortgages. Harry Reid and Nancy Pelosi are pushing for this bill just as hard as anyone. They think the next President will be a Democrat, and therefore the next Treasury Secretary a Democrat. -
D. PROGRAM GUIDELINES appears to say the purchasing guidelines will be established AFTER they start buying the "troubled assets"?
posted by Barbara B. from Winchester, MA at October 2, 2008 -
e. PREVENTING UNJUST ENRICHMENT - this section is incredibly vague and weak. We will pay no more than full price for troubled assets? There is an exception for assets from mergers or bankruptcies, so does that mean we taxpayers can pay _more_ than full price for those? What?
posted by Barbara B. from Winchester, MA at October 2, 2008
Are bankruptcy laws this vague and eager to fully restore the funds of the troubled party that is in bankruptcy? -
Considering the fact that Paulson was CEO of Goldman Sachs (one of the struggling companies) as recently as 2006, I would say this is like asking the fox to guard the henhouse.
posted by Michelle (college student extraordinaire) at October 3, 2008 -
I can't believe that our legislators are willing first to give the Bush/Cheney team near dictatorial power, and now to consider giving Secretary Paulson similar unconstitutional powers.
posted by Anonymous at October 3, 2008
" C.NECESSARY ACTIONS.The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation, the following:
3.Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this Act as financial agents of the Federal Government as may be required."
Karl Marx would love this legislation. Proposal Number Five in his Communist Manifesto sounds remarkably similar to the above quote. Proposal number Five was to bring about the "centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly." First the creation of the Federal Reserve, now this!! We're almost there, Karl!! -
Paulson and wall streets new theme song
posted by Barry J. from michigan at October 3, 2008
song by The Steve Miller Band
titled "GO ON TAKE THE MONEY AND RUN" -
This is another example of the people electing the individual, then the individual goes politico, and does what he or she does as they damn well please. To paraphrase a great American, "Damn the the constiuents, lets do it our way."
posted by Don Chamberlin at October 3, 2008 -
Well I saw it comming a long time ago, Greed, corruption and just dumb americans. Wake up people 60k americans were murdered by illegal aliens since 9/11, yet we are compeled to provide them with free social services or be called racist. The Worlds largest insurance company is now nationalized, yet people think they want nationalized healthcare, Can you say morons? No wonder american companies ship jobs elsewhere. Are you amazed at how stupid people really are today? When you give your childs future away to have a sub 3rd world mexican economy because you would like cheap labor, or maybe feel good about yourself, you can only have yourself to blame when you get what you deserve. People whine about what the Iraq war is costing try and look up what it cost to provide foodstamps and free health care to illegals. Or what these companies who fire americans are saving by getting visas for Idians or pakistanis to work for half. Americans are not patriotic or even attempt to hold the same standard for whom they elect. We got what we deserve and I truely hope it will get alot worse, maybe we will be forced to become americans again and not a free welfare state to the lazy and greedy modern day slave traders that run this country.
posted by utahsaints at October 4, 2008 -
The acronym TARP provides enough warning.
posted by Erich Riesenberg at October 5, 2008 -
it is time to march on washington and take back our country
posted by you me at November 20, 2008 -
I hope the Democrats on this site realize that this man (George Bush) is using the opposite of what Richard Nixon, Theodore Roosevelt, and most of the more popular framers would have done. In essence, congratulations on your new bill.
posted by Jack- School at December 3, 2008