Foreign Banks Can Unload Bad Debt Too:

[EV_Ares]

Treasury Secretary Henry Paulson said Sunday that foreign banks will be able to unload bad financial assets under a $700 billion U.S. proposal aimed at restoring order during a devastating financial crisis.

"Yes, and they should. Because ... if a financial institution has business operations in the United States, hires people in the United States, if they are clogged with illiquid assets, they have the same impact on the American people as any other institution," Paulson said on ABC TV.

The legislation also does not currently include warrants for the government to take stakes in participating institutions, as it did in the AIG bailout, these leaders said.

There is a very strong push from some Democrats to include salary restrictions for CEOs of participating financial institutions. But Paulson is resisting the idea, calling it a "poison pill."

Democrats also are seeking to include something for "Main Street" in the bill, such as relief for distressed mortgage holders.

House Speaker Nancy Pelosi initially was inclined to accept Paulson's wish that a second economic stimulus plan not be included in the bill. But some Democratic members are pushing back, trying to get it attached in return for support.



entire article @ link: http://www.cnbc.com/id/26819306

[Earth_First]

1. Wow. Just WOW!

I forsee this costing well beyond $700 billlion.

[flamingdem]

2. Calling all International Oinker Friends to Trough !

We're going to share the spoils with you guys too.

[liberalmuse]

3. Fuck Paulson.

I'm so over this ass. His number one concern is making sure the CEO's don't get screwed.