Bush Jumps In Where Congress Fears To Tread
In one of the best moves of his presidency (in fact, I’m hard press to think of many others), President Bush has freed up $17.4 billion, to prevent what he refers to as “disorderly bankruptcy.”
“My economic advisers believe that such a collapse would deal an unacceptably painful blow to hardworking Americans far beyond the auto industry. It would worsen a weak job market and exacerbate the financial crisis,” he said. “It could send our suffering economy into a deeper and longer recession.”
There are strings attached. Among them:
-Firms must provide warrants for non-voting stock.
-Firms must accept limits on executive compensation and eliminate perks such as corporate jets.
-Debt owed to the government would be senior to other debts, to the extent permitted by law.
-Firms must allow the government to examine their books and records.
-Firms must report and the government has the power to block any large transactions (> $100 M).
-Firms must comply with applicable Federal fuel efficiency and emissions requirements.
-Firms must not issue new dividends while they owe government debt.
The money will come from the Wall Street bailout fund. Ironically, this is something PEOTUS and Democrats wanted and Bush resisted.Click here for reuse options!
Copyright 2008 Liberaland