Presidential candidates Senators John McCain and Barack Obama met yesterday with President George Bush and other political highest level in the White House to discuss the bailout plan for banks to 700 billion dollars. The meeting ended without the expected agreement. An important group of deputies opposed the Republican package, which now seems little transparency.
Prior to the meeting at the White House, the Republican and Democratic congressional negotiators had reached a tentative agreement on changes to be introduced in the rescue plan. From these discussions at the Capitol one thing is clear: neither the government nor the opposition support the project which was conceived by the Bush administration. The four main points on which they
discussed the legislators were as follows:
split the package of 700 billion dollars in three parts.
First, the "Congress" authorizes the government to use 250 billion to bail out banks.
Then after an assessment of how the money was used, would be granted other 100 billion euro. Finally, after another inspection of how the money was spent and the benefit of concrete against the financial crisis, would provide the remaining EUR 350 billion.
The Congress gives the power to withhold payments if not satisfied with the execution of the program by the Bush administration. That is, may stop operating, rather than giving a blank check to the government.
On these points have been discussing the Treasury secretary, Henry Paulson, the chairman of the Federal Reserve (central bank), Ben Bernanke and members of Congress.
The opposition has also raised four additional points:
- A mechanism for monitoring the fate of the money.
- A roof in the payment of compensation for executives of the firms affected.
- assistance to owners of houses damaged by financial speculation.
- A detailed inspection of goods "purchased" by the government to maintain its value.
These points are rejected by those who drafted the bailout: Treasury Secretary, Henry Paulson, the chairman of the Federal Reserve (central bank), Ben Bernanke.
We'll see ....
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