Monday, September 22, 2008

Update on Paulson Plan

by Calculated Risk on 9/22/2008 08:14:00 PM

The WSJ reports: Stronger Oversight Gets Nod in Talks

The administration agreed to allow tougher oversight over the cleanup and provide fresh assistance to homeowners facing foreclosure, two Democratic priorities. In addition, negotiators neared agreement on allowing the government to take equity stakes in companies that participate in the rescue, a measure Treasury had wanted to avoid.

But differences remain on two big items: possible limits on executive compensation at firms taking advantage of the bailout; and changes to bankruptcy law that would let judges adjust the terms of mortgages.
It's hard to call the executive compensation provision a "big item", and the cram-downs have been a sticking point for some time. This is actually getting pretty close.