U.S. lawmakers have made public draft legislation that would pay for
the government to buy up to 700-billion dollars in bad debt from
private financial companies.
The draft of the law was circulated Sunday to allow lawmakers to review
it before voting on it, possibly as early as Monday. Congressional
leaders and Treasury Secretary Henry Paulson announced the deal early
Sunday, and said they hoped to formally announce the bailout bill
before Asian markets open Monday.
According to Speaker of the House of Representatives Nancy Pelosi, the
bill will put money into financial institutions to stabilize the
economy. She says it will reimburse the taxpayer through ownership of
shares in businesses that receive bailout money - and through
appreciation in the value of purchased assets. And Pelosi says the bill
will mandate oversight of the bailout plan and reform regulations of
Wall Street.
The proposal is expected to include limits on payments to executives of
rescued companies, and a requirement for the government to try to keep
homeowners from losing their homes.
White House spokesman Tony Fratto said President George Bush is pleased
with the progress made on the plan and appreciates the bipartisan
effort.
Both U.S. presidential candidates, Republican John McCain and Democrat Barack Obama, on Sunday praised the proposed 700-billion-dollar deal for including an independent oversight body and taxpayer protection.
Meanwhile in Britain, treasury officials say they will announce before
the market opens Monday whether they will nationalize leading mortgage
lender Bradford and Bingley.