USLegal Reporter

The House of Representatives on Monday defeated a proposed $700 billion bailout of many of the nation’s leading financial institutions. The Emergency Economic Stabilization Act of 2008 (EESA) would have authorized the government to buy mortgage-related and other assets from institutions that have led to economic instability. However, the House rejected the bill by a 228 (against), 205 (for) vote.

The Stock Market plunged 777 points, losing $1.2 trillion after investors learned about the news.

Source: http://www.usatoday.com/money/markets/2008-09-29-stocks-plunge-bailout_N.htm

Wisconsin’s District 4 Court of Appeals has held that a state law that prohibits anyone who “intentionally kills” another from inheriting from the person does not apply to those who assist in suicide. In the court’s unanimous opinion, Judge Margaret Vergeront wrote, “Providing (the man) with a loaded shotgun did not deprive him of his life: he deprived himself of life by shooting himself with the shotgun,”

Edward Schunk, 63, shot himself in 2006 in a cabin on his property while dying from non-Hodgkin’s lymphoma, a form of cancer. His estate was valued at nearly $500,000. The court granted Schunk’s wife, Linda, and youngest child, Megan Schunk, now 20, most of the estate, after five of the six older children challenged his will. The older children claimed that Linda and Megan Schunk took Schunk to the cabin, gave him a loaded shotgun and left even though they knew he was suicidal.

Members of Congress struck a tentative deal on Sunday on a $700 billion dollar bailout proposal to rescue many of the nation’s leading financial institutions. A major component of the plan would authorize the government to buy mortgage-related and other distressed assets from institutions that have led to economic instability.

The plan would disburse money in stages beginning with an immediate authorization of $250 billion to the Treasury Department to buy up troubled assets.

It will also limit compensation packages and golden parachutes paid to top executives who work for financial institutions involved.

The government will also be able to increase modification programs on loans it acquires to assist distressed homeowners and prevent foreclosures.

If passed, the bill would be the largest government bailout since the Great Depression.

Sources: http://www.house.gov/apps/list/press/financialsvcs_dem/press092808.shtml

http://money.cnn.com/2008/09/28/news/economy/Sunday_talks_bailout/index.htm?postversion=2008092822

Federal regulators on Thursday seized control of Washington Mutual and negotiated a deal to sell the bulk of its assets and operations to JP Morgan Chase and Company. The Federal Insurance Deposit Corporation authorized the sale to JPMorgan for $1.9 billion.

Washington Mutual’s collapse is the largest bank failure in US history.

See Office of Thrift Supervision Press Release for more details:

http://www.ots.treas.gov/?p=PressReleases&ContentRecord_id=9c306c81-1e0b-8562-eb0c-fed5429a3a56

California Governor Arnold Schwarzenegger signed legislation Wednesday, which will become effective January 1, 2009, that prohibits texting while driving. The law makes using a wireless phone device to text in any form while driving an automobile illegal, including writing, sending or reading a text message. Penalties for violations of the law include fines of $20 for first time offenders and $50 for subsequent violations.

According to the governor, “[b]anning electronic text messaging while driving will keep drivers’ hands on the wheel and their eyes on the road, making our roadways a safer place for all Californians.”

Source: http://www.kcra.com/news/17551235/detail.html

http://gov.ca.gov/press-release/10608

Thirteen state attorneys general wrote a letter to the Department of Health and Human Services Wednesday in protest of a rule recently proposed by the Bush Administration to prohibit employer or medical society retaliation against a health care professional who opposes abortion for religious or moral reasons. The proposed rule would require certification by hospital, medical office and nursing home employers that the employer’s practices comply with federal law in protecting the conscience of health care workers. Violations could result in losing future government funding and a recovery of funds already received. Specifically, the rule was designed to enforce protection of the conscience of health care workers found in three federal laws, which under certain circumstances offer protection for parties who participate in abortions as well as those who do not.

The attorneys general claim the rule, which is applicable to employers receiving government money, vaguely defines abortion in a way that could be interpreted to include birth control, and is a threat to institutions who provide services to victims of rape. The states involved in the protest are Connecticut, Arizona, Illinois, Iowa, Maine, Maryland, Massachusetts, Montana, New Jersey, Oregon, Rhode Island, Utah and Vermont.

Source: http://www.lexisone.com/news/ap/ap092408s.html

The Federal Reserve Board on Sunday cleared the way for Goldman Sachs and Morgan Stanley, the nation’s last two remaining investment banks, to now operate as bank holding companies. This means that the companies can operate as commercial banks and can now take in deposits and increase their resources. The drastic move is also part of a plan to keep the institutions from collapsing.

Both banks must now abide by stricter rules set in place by the Federal Reserve. Previously, they were regulated by the Securities and Exchange Commission.

After consulting with the Justice Department, the Federal Reserve noted today that the statutory five-day antitrust waiting period will not be neccessary and the change in status will be granted immediately.

Sources:

http://www.federalreserve.gov/newsevents/press/bcreg/20080922a.htm

http://www.federalreserve.gov/newsevents/press/bcreg/20080921a.htm

http://www.npr.org/templates/story/story.php?storyId=94877512

The Federal Reserve and Congressional leaders are close to announcing a comprehensive plan to stem the nation’s financial crisis. The plan aims to relieve financial institutions of mortgage-backed securities and other distressed assets that have led to ecomonic instability.

The plan, which is expected to be announced next week, will be the biggest government bail out since the Great Depression.

Source: http://www.latimes.com/business/la-fi-wallstreet19-2008sep19,0,1751143.story

The Bush Administration is expected to sign into law a civil rights bill, which Congress approved Wednesday, that expands disability protection under the 1990 Americans With Disabilities Act through a broader definition of disability and provisions that make proving disability much easier. The Americans With Disabilities Act Amendments Act rejects recent Supreme Court decisions and prohibits courts from considering the effects of mitigating factors such as prescription drugs, hearing aids or artificial limbs when making a disability determination. The legislation further recognizes an individual’s episodic impairment or one in remission if it would substantially limit a major life activity for that person during its occurrence.

Source: http://www.lexisone.com/news/ap/ap091808a.html

The Arizona Attorney General Terry Goddard has sued the Phoenix Country Club, alleging that the separate dining rooms for men and women denies equal amenities and networking oportunities to women. The lawsuit seeks money damages and an injunction to prevent gender-based discrimination. The club is claimed to be well-known for brokering power deals in the mens’ grill. The attorney general also noted the relative lack of amenities in the womens’ grill, while listing the more luxurious benefits of the men’s grill, including three high-definition televisions, a buffet and a bar, and gorgeous views of the golf course.

Typically, a private club isn’t subject to gender discrimination charges for denying membership privileges based on gender. However, although the club is private and not subject to the state’s anti-discrimination laws, the claim alleges it is the equivalent of a public accommodation because it receives much of its revenue from non-members, including speeches, tournaments, Rotary Club meetings and similar entities.

Source: http://www.lexisone.com/news/ap/ap091708g.html