Paycut, Yes? Bankruptcy Change, No?

The Hill is reporting that Senate Democrats and Treasury Secretary Paulson have agreed on the outline of a bailout bill.

Everyone won a bit and everyone lost a bit.

The Democrats get to cut the pay of bank executives. They get more oversight of the Treasury bailout and—good news for journalists—the bailout process is supposed to be more transparent.

And the U.S. gets to really get into the banking profession. The Treasury may receive ownership shares in the banks it bails out.

Paulson, reportedly, wouldn't budge on changes to bankruptcy law that would allow judges to rewrite the terms of mortgage contracts.

The story says this is all quite tentative and could collapse any minute. But, for now, a rough outline of a deal is on the table.

It says Congress hopes to hash it out over the weekend and vote by Sunday.



Please keep your community civil. All comments must follow the Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

Maybe this has been answered somewhere already, but, why so much resistance to allowing people to renegotiate their near-foreclosure mortgages?

Sent by Ritadona | 9:06 AM | 9-25-2008

NPR thanks our sponsors

Become an NPR sponsor

Support comes from