Members of Congress struck a tentative deal on Sunday on a $700 billion dollar bailout proposal to rescue many of the nations 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
Tags: Treasury Department
