Significant Changes Recap
- Initial size of the boondoggle reduced to $250 billion. Paulson was adamant against that provision as was Bernanke.
- The government (taxpayer) will get warrants in participating companies. This is likely to be symbolic, but perhaps not. It depends on how it is structured. Paulson was adamant against this provision as well.
- The agreement could require all companies participating in the program to agree to limits on executive pay—such as restrictions on "golden parachutes." The article says could. My translation is "will". Paulson was adamant against this provision as well. It seems that everything Paulson has been adamant against is failing. His score is -5 and counting, starting with Fannie Mae.
I am curious about how this can happen. "Mr. Shelby has said he opposes the idea of bailing out Wall Street and was replaced in negotiations by Mr. Bennett, the number two GOP senator on the Banking panel."
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