Not only has a deal been reached, but it seems like everyone’s pretty happy with it.
The measure’s main elements were proposed a week ago by the Bush administration, with Paulson heading efforts to push it through the Democratic-controlled Congress. Democrats insisted on greater congressional oversight, more taxpayer protections, help for homeowners facing possible foreclosure, and restrictions on executives’ compensation.
To some degree, all those items were added.
At the insistence of House Republicans, who threatened to sidetrack negotiations at midweek, the insurance provision was added as an alternative to having the government buy distressed securities. House Republicans say it will require less taxpayer spending for the bailout.
So we’ve got the insurance idea, the oversight, the ability to block the second $350bil if Congress feels like they money isn’t being used well. The Democrats got what they want, the Republicans seem pleased, and even the White House is speaking favorably on the agreements.
Now, how will John McCain try and take credit, and will anyone buy it?
