Published: September 20, 2008
LEGISLATIVE PROPOSAL FOR TREASURY
AUTHORITY
TO PURCHASE MORTGAGE-RELATED ASSETS
Section 1. Short
Title.
This Act may be cited as ____________________.
Sec. 2. Purchases of
Mortgage-Related Assets.
(a) Authority to Purchase.--The Secretary is
authorized to purchase, and to make and fund commitments to purchase, on such
terms and conditions as determined by the Secretary, mortgage-related assets
from any financial institution having its headquarters in the United
States.
(b) Necessary Actions.--The Secretary is authorized to take such
actions as the Secretary deems necessary to carry out the authorities in this
Act, including, without limitation:
(1) appointing such employees as may be
required to carry out the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services authorized by
section 3109 of title 5, United States Code, without regard to any other
provision of law regarding public contracts;
(3) designating financial
institutions as financial agents of the Government, and they shall perform all
such reasonable duties related to this Act as financial agents of the Government
as may be required of them;
(4) establishing vehicles that are authorized,
subject to supervision by the Secretary, to purchase mortgage-related assets and
issue obligations; and
(5) issuing such regulations and other guidance as may
be necessary or appropriate to define terms or carry out the authorities of this
Act.
Sec. 3. Considerations.
In exercising the authorities granted in
this Act, the Secretary shall take into consideration means for--
(1)
providing stability or preventing disruption to the financial markets or banking
system; and
(2) protecting the taxpayer.
Sec. 4. Reports to
Congress.
Within three months of the first exercise of the authority granted
in section 2(a), and semiannually thereafter, the Secretary shall report to the
Committees on the Budget, Financial Services, and Ways and Means of the House of
Representatives and the Committees on the Budget, Finance, and Banking, Housing,
and Urban Affairs of the Senate with respect to the authorities exercised under
this Act and the considerations required by section 3.
Sec. 5. Rights;
Management; Sale of Mortgage-Related Assets.
(a) Exercise of Rights.--The
Secretary may, at any time, exercise any rights received in connection with
mortgage-related assets purchased under this Act.
(b) Management of
Mortgage-Related Assets.--The Secretary shall have authority to manage
mortgage-related assets purchased under this Act, including revenues and
portfolio risks therefrom.
(c) Sale of Mortgage-Related Assets.--The
Secretary may, at any time, upon terms and conditions and at prices determined
by the Secretary, sell, or enter into securities loans, repurchase transactions
or other financial transactions in regard to, any mortgage-related asset
purchased under this Act.
(d) Application of Sunset to Mortgage-Related
Assets.--The authority of the Secretary to hold any mortgage-related asset
purchased under this Act before the termination date in section 9, or to
purchase or fund the purchase of a mortgage-related asset under a commitment
entered into before the termination date in section 9, is not subject to the
provisions of section 9.
Sec. 6. Maximum Amount of Authorized
Purchases.
The Secretary’s authority to purchase mortgage-related assets
under this Act shall be limited to $700,000,000,000 outstanding at any one
time
Sec. 7. Funding.
For the purpose of the authorities granted in this
Act, and for the costs of administering those authorities, the Secretary may use
the proceeds of the sale of any securities issued under chapter 31 of title 31,
United States Code, and the purposes for which securities may be issued under
chapter 31 of title 31, United States Code, are extended to include actions
authorized by this Act, including the payment of administrative expenses. Any
funds expended for actions authorized by this Act, including the payment of
administrative expenses, shall be deemed appropriated at the time of such
expenditure.
Sec. 8. Review.
Decisions by the Secretary pursuant to the
authority of this Act are non-reviewable and committed to agency discretion, and
may not be reviewed by any court of law or any administrative agency.
Sec. 9.
Termination of Authority.
The authorities under this Act, with the exception
of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years
from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit
on the Public Debt.
Subsection (b) of section 3101 of title 31, United States
Code, is amended by striking out the dollar limitation contained in such
subsection and inserting in lieu thereof $11,315,000,000,000.
Sec. 11. Credit
Reform.
The costs of purchases of mortgage-related assets made under section
2(a) of this Act shall be determined as provided under the Federal Credit Reform
Act of 1990, as applicable.
Sec. 12. Definitions.
For purposes of this
section, the following definitions shall apply:
(1) Mortgage-Related
Assets.--The term “mortgage-related assets” means residential or commercial
mortgages and any securities, obligations, or other instruments that are based
on or related to such mortgages, that in each case was originated or issued on
or before September 17, 2008.
(2) Secretary.--The term “Secretary” means the
Secretary of the Treasury.
(3) United States.--The term “United States”
means the States, territories, and possessions of the United States and the
District of Columbia.
To get a used car has more paperwork.
The best part is:
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of
this Act are non-reviewable and committed to agency discretion, and may not be
reviewed by any court of law or any administrative agency.
So how we got into this mess was not enough oversight. That's what was said. Now even the government doesn't want to be held accountable.
This country was based on the belief of limited government interference in the market place. Now we are becoming what we have tried to withhold from ourselves, through better or worse.
Socialism is a political philosophy advocating substantial public involvement, through government ownership, in the means of production and distribution.
"Isn't it ironic, don't you think?"
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