Congress gets $700 billion financial bailout plan
Written on September 20, 2008
The Bush administration sent a $700 billion financial markets rescue plan to Congress on Saturday where Democrats are looking to add aid for distressed homeowners and other measures to help average citizens in addition to Wall Street.
The plan to buy mortgage-related debt off the balance sheets of U.S. banks and other financial institutions is part of an all-out attack on the worst financial crisis since the Great Depression.
The U.S. Treasury Department would be authorized to purchase as much as $700 billion in mortgage-related assets from U.S. based institutions, according to a copy of the department’s draft legislation obtained by Reuters.
In a related move, the proposal would raise the U.S. government’s debt limit to $11.315 trillion from $10.615 trillion.
Congressional leaders have promised swift action on the bailout package but many details are still to be worked out.
As lawmakers’ aides huddled on Capitol Hill, President George W guaranteed payday loan. Bush acknowledged the plan would put large amounts of taxpayer money on the line to buttress shaky financial markets.
“But I’m convinced that this bold approach will cost American families far less than the alternative,” he said in his weekly radio address.
“Further stress on our financial markets would cause massive job losses, devastate retirement accounts, further erode housing values, and dry up new loans for homes, cars and college tuitions.”
Filed in: finance.