H.R.1424 Emergency Economic Stabilization Act of 2008

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TITLE I: Purchas of Troubled Assets

Executive Summary

Purpose:

(1) to immediately provide authority and facilities that the Secretary of the Treasury can use to restore liquidity and stability to the financial system of the United States; and
(2) to ensure that such authority and such facilities are used in a manner that--

• (A) protects home values, college funds, retirement accounts, and life savings;
• (B) preserves homeownership and promotes jobs and economic growth;
• (C) maximizes overall returns to the taxpayers of the United States; and
• (D) provides public accountability for the exercise of such authority.

AUTHORITY- SECRETARY- The Secretary of the Treasury [hereafter called the Secreatary ] is authorized to establish the Troubled Asset Relief Program (or `TARP') to purchase, and to make and fund commitments to purchase, troubled assets from any financial institution, on such terms and conditions as are determined by the Secretary, and in accordance with this Act and the policies and procedures developed and published by the Secretary.

• within the Office of Domestic Finance of the Department of the Treasury.

Preparation for Buying and Insuring Troubed Assets:

Before the end of the 2nd business day after purchasing an asset or within 45 days of the signing this bill which ever comes first, [I read that Monday, 17 November, 2008] the Secretary shall publish program guidelines, including the following:

(1) Mechanisms for purchasing troubled assets.
(2) Methods for pricing and valuing troubled assets.
(3) Procedures for selecting asset managers.
(4) Criteria for identifying troubled assets for purchase.

TROUBLED ASSETS- The term `troubled assets' means--

(A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and

(B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress.

In exercising the authority under this section, the Secretary shall consult with:

• Board of Governors of the Federal Reserve System
• The Federal Deposit Insurance Corporation
• The Comptroller of the Currency
• The Director of the Office of Thrift Supervision,
• The Chairman of the National Credit Union Administration Board
• The Secretary of Housing and Urban Development

The Oversight Board

SEC. 104. FINANCIAL STABILITY OVERSIGHT BOARD.
(a) Establishment- There is established the Financial Stability Oversight Board, which shall be responsible for--

(1) reviewing the exercise of authority under a program developed in accordance with this Act, including--

• (A) policies implemented by the Secretary and the Office of Financial Stability created under sections 101 and 102, including the appointment of financial agents, the designation of asset classes to be purchased, and plans for the structure of vehicles used to purchase troubled assets; and
• (B) the effect of such actions in assisting American families in preserving home ownership, stabilizing financial markets, and protecting taxpayers;

(2) making recommendations, as appropriate, to the Secretary regarding use of the authority under this Act; and

(3) reporting any suspected fraud, misrepresentation, or malfeasance to the Special Inspector General for the Troubled Assets Relief Program or the Attorney General of the United States, consistent with section 535(b) of title 28, United States Code.

(b) Membership- The Financial Stability Oversight Board shall be comprised of--

• (1) the Chairman of the Board of Governors of the Federal Reserve System;
• (2) the Secretary;
• (3) the Director of the Federal Housing Finance Agency;
• (4) the Chairman of the Securities Exchange Commission; and
• (5) the Secretary of Housing and Urban Development.

Chairperson- The chairperson of the Financial Stability Oversight Board shall be elected by the members of the Board from among the members other than the Secretary

SEC. 105. REPORTS.
(a) In General-

• Before the expiration of the 60-day period beginning on the date of the first exercise of the authority granted in section 101 [or November 17th]
• every 30-day period thereafter, the Secretary shall report to the appropriate committees of Congress, with respect to each such period--

IT will include:

• an overview of actions taken by the Secretary,
• the actual obligation and expenditure of the funds provided for administrative expenses
• a detailed financial statement with respect to the exercise of authority under this Act, including--
  (A) all agreements made or renewed;
  (B) all insurance contracts
• (C) all transactions occurring during such period, including the types of parties involved;
  (D) the nature of the assets purchased;
  (E) all projected costs and liabilities;
  (F) operating expenses, including compensation for financial agents;
  (G) the valuation or pricing method used for each transaction; and
  (H) a description of the vehicles established to exercise such authority.

SEC. 110 Assistance to Homeowners

Homeowner Assistance by Agencies-
(1) IN GENERAL- To the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed securities, and other assets secured by residential real estate, including multifamily housing,

the Federal property manager shall implement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the servicers of the underlying mortgages, and considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures.

• MODIFICATIONS- In the case of a residential mortgage loan, modifications made under paragraph (1) may include--
  (A) reduction in interest rates;
  (B) reduction of loan principal
• (C) other similar modifications
• TENANT PROTECTIONS- In the case of mortgages on residential rental properties, modifications shall ensure--
  (A) the continuation of any existing Federal, State, and local rental subsidies and protections; and
  (B) that modifications take into account the need for operating funds to maintain decent and safe conditions at the property.

SEC 113 Long-Term Costs and Benefits-

(1) MINIMIZING NEGATIVE IMPACT- The Secretary shall use the authority under this Act in a manner that will minimize any potential long-term negative impact on the taxpayer,

(2) AUTHORITY- In carrying out paragraph (1), the Secretary shall--

• (A) hold the assets to maturity or for resale for and until such time as the Secretary determines that the market is optimal for selling such assets, in order to maximize the value for taxpayers; and
• (B) sell such assets at a price that the Secretary determines, based on available financial analysis, will maximize return on investment for the Federal Government.

(3) PRIVATE SECTOR PARTICIPATION- The Secretary shall encourage the private sector to participate in purchases of troubled assets, and to invest in financial institutions, consistent with the provisions of this section.

SEC. 114. MARKET TRANSPARENCY.
(a) Pricing- To facilitate market transparency, the Secretary shall make available to the public, in electronic form, a description, amounts, and pricing of assets acquired under this Act, within 2 business days of purchase, trade, or other disposition.

(b) Disclosure- For each type of financial institutions that sells troubled assets to the Secretary under this Act, the Secretary shall determine whether the public disclosure required for such financial institutions with respect to off-balance sheet transactions, derivatives instruments, contingent liabilities, and similar sources of potential exposure is adequate to provide to the public sufficient information as to the true financial position of the institutions.

SEC 116 Comptroller General Oversight-

(1) SCOPE OF OVERSIGHT- The Comptroller General of the United States shall, upon establishment of the troubled assets relief program (TARP) under this Act ,commence ongoing oversight of the activities and performance of the TARP and of any agents and representatives of the TARP

(A) GAO PRESENCE- The Secretary shall provide the Comptroller General with appropriate space and facilities in the Department of the Treasury as necessary to facilitate oversight....

SEC 119 Judical Actions

• LIMITATION ON ACTIONS BY PARTICIPATING COMPANIES- No action or claims may be brought against the Secretary by any person that divests its assets with respect to its participation in a program under this Act, except as provided in paragraph (1), other than as expressly provided in a written contract with the Secretary.
• (4) STAYS- Any injunction or other form of equitable relief issued against the Secretary for actions pursuant to section 101, 102, 106, and 109, shall be automatically stayed. The stay shall be lifted unless the Secretary seeks a stay from a higher court within 3 calendar days after the date on which the relief is issued.

(a) Termination- The authorities provided under sections 101(a), excluding section 101(a)(3), and 102 shall terminate on December 31, 2009.

Title II: Extended a bunch of Individual Tax deducions ythat were about to expire for two more years.

TITLE III EXTENSION OF BUSINESS TAX PROVISIONS

This is where the Energy Incetives are and the begin is the Section 300s

(To Be Published)