Deal or No Deal
Congressional negotiators said they reached a bipartisan agreement on a “set of principles” for a $700 billion financial-rescue package to inject fresh capital into the paralyzed credit markets.
Lawmakers agreed that legislation should include provisions on oversight of the Treasury-run program, limits on executive pay and a section on homeownership preservation, Senate Banking Committee Chairman Christopher Dodd said.
Still unresolved is whether the bill will include a provision allowing bankruptcy judges to change mortgage terms. The Treasury would have $250 billion available immediately, said a Senate aide, who requested anonymity.
If there is still a key point of dispute (to wit: a bankruptcy provision), then it hard to see how there is a deal yet. As to the Bush/McCain/Obama photo-op, it seems clear to me this is all about saving McCain’s hide. Ambinder:
My colleague Nora McAvalnah tells me that sources close to Senate Democratic leadership now fear that McCain’s true motivation for calling off his campaign and coming back to DC is simply to cast a “no” vote against the bailout, despite his private statements to the contrary. And it’s a smart maneuver: nothing says “maverick,” like voting against Bush and standing with the American public, who remain very wary of the proposal.
As I said earlier:
This deal should be put off, preferably until after the election. Barring that, I approve of this deal being implemented in installments. Say, $150 Billion at a time…at most.