Dodd Refines Bailout Rules

Senator Dodd has done a pretty good job of fixing what was wrong with Paulson’s proposal. Here’s the PDF summary, and here’s the PDF text.

High points:

Transparency:

1. Establishment of an oversight board
2. Required transparency – specifically, that the program’s details be laid out with policies and procedures
3. Improved Reporting – Monthly reporting, and detailed financial statements describing specific transactions
4. GAO Audit
5. Warrants in exchange for companies selling bad assets
6. Requirements for rules surrounding potential conflicts of interest (by fund managers involved such as PIMCO)
7. Establishes parity between banks and money markets for FDIC insured deposits
8. Requires standards limiting executive compensation for bailed out companies

Homeowner Assistance

1. Court-Supervised Loan Modifications
2. FDIC Management of Mortgage Assets
3. Affordable Housing Funds
4. Expansion of HOPE to allow more people to qualify

This is definitely more encouraging. I haven’t read the actual text, though, so can’t say whether the key issue of no accountability, etc has been addressed.

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