First Read Through of Bail Out Bill

September 28, 2008

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Bail out bill here.
I’ll probably have to resume this tomorrow am, but this looks interesting. What is ‘unjust’ enrichment, exactly?

11 (e) PREVENTING UNJUST ENRICHMENT.—In making
12 purchases under the authority of this Act, the Secretary
13 shall take such steps as may be necessary to prevent un
14 just enrichment of financial institutions participating in
15 a program established under this section, including by pre16
venting the sale of a troubled asset to the Secretary at
17 a higher price than what the seller paid to purchase the
18 asset. This subsection does not apply to troubled assets
19 acquired in a merger or acquisition, or a purchase of as20
sets from a financial institution in conservatorship or re21
ceivership, or that has initiated bankruptcy proceedings
22 under title 11, United States Code.

More money for bailouts for homeowners:

SEC. 109. FORECLOSURE MITIGATION EFFORTS.
2 (a) RESIDENTIAL MORTGAGE LOAN SERVICING
3 STANDARDS.—To the extent that the Secretary acquires
4 mortgages, mortgage backed securities, and other assets
5 secured by residential real estate, including multifamily
6 housing, the Secretary shall implement a plan that seeks
7 to maximize assistance for homeowners and use the au8
thority of the Secretary to encourage the servicers of the
9 underlying mortgages, considering net present value to the
10 taxpayer, to take advantage of the HOPE for Home11
owners Program under section 257 of the National Hous12
ing Act or other available programs to minimize fore13
closures. In addition, the Secretary may use loan guaran14
tees and credit enhancements to facilitate loan modifica15
tions to prevent avoidable foreclosures.

Is this the ACORN bailout? See previous post.

(1) IN GENERAL.—To the extent that the Fed2
eral property manager holds, owns, or controls mort3
gages, mortgage backed securities, and other assets
4 secured by residential real estate, including multi5
family housing, the Federal property manager shall
6 implement a plan that seeks to maximize assistance
7 for homeowners and use its authority to encourage
8 the servicers of the underlying mortgages, and con9
sidering net present value to the taxpayer, to take
10 advantage of the HOPE for Homeowners Program
11 under section 257 of the National Housing Act or
12 other available programs to minimize foreclosures.

Mark to Market could be gone:

SEC. 132. AUTHORITY TO SUSPEND MARK-TO-MARKET AC9
COUNTING.
10 (a) AUTHORITY.—The Securities and Exchange Com11
mission shall have the authority under the securities laws
12 (as such term is defined in section 3(a)(47) of the Securi13
ties Exchange Act of 1934 (15 U.S.C. 78c(a)(47)) to sus14
pend, by rule, regulation, or order, the application of
15 Statement Number 157 of the Financial Accounting
16 Standards Board for any issuer (as such term is defined
17 in section 3(a)(8) of such Act) or with respect to any class
18 or category of transaction if the Commission determines
19 that is necessary or appropriate in the public interest and
20 is consistent with the protection of investors.

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