16 of 33
BACKNEXT
Sunday, Sept. 28 - Hard-won agreement
Sunday, Sept. 28 - Hard-won agreement
(L-R) House Financial Services Committee Chairman Barney Frank D-MA, Senate Majority Leader Harry Reid D-NV, Speaker of the House Nancy Pelosi D-CA, and Senate Banking, Housing and Urban Affairs Committee Chairman Christopher Dodd D-CT, hold a news conference at the U.S. Captiol September 28, 2008 in Washington, DC to announce the final bailout agreement.
After days of intense negotiations on Capitol Hill, lawmakers unveiled the bailout's final legislation late Sunday afternoon. The bill calls for Treasury to buy as much as $700 billion in troubled mortgages and other assets from financial institutions, which was what Treasury Secretary Henry Paulson proposed when he first announced the plan on Sept. 18.

But the bill, which will go to the House for a vote on Monday and to the Senate on Wednesday, contains provisions addressing some of lawmakers' concerns about the burden that the bailout could have on taxpayers.

The $700 billion would be disbursed in stages, with $250 billion made available immediately for the Treasury's use. And although experts expect Treasury to be able to sell the troubled assets for more than they bought them for, the bill says that the president must propose legislation to recoup money from the financial industry if the rescue plan results in net losses to taxpayers at the end of five years.

In addition, Treasury would be allowed to take ownership stakes in participating companies. The legislation also requires the government, as the owner of mortgage loans, to try to modify more troubled loans. There will be limits on executive compensation for participating companies, and two oversight board established to guide the program.

As history was unfolding in Washington, there was yet more drama developing. In Europe, Dutch-Belgian bank and insurance giant Fortis NV received a 11.2 billion euro ($16.4 billion) lifeline by authorities in Belgium, the Netherlands and Luxembourg. And on Wall Street, a bidding war erupted for the troubled bank Wachovia between banking giants Citigroup and Wells Fargo.

NEXT: Monday, Sept. 29 - Crushing defeat
Last updated September 14 2009: 2:19 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
5 ways retailers are tracking you If you think pesky salespeople are invading your personal space, check out these 5 technologies that are tracking your movements throughout a store. More
Moto X vs. Droid Turbo: Which Droid should you buy? Motorola has made the two best Android smartphones this year. Here's how they stack up. More
My part-time job is a dead end, but it's all I can find CNNMoney profiles 4 of America's 7 million part-time workers unable to find full-time jobs. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.