October 6, 2008

MEMBER ALERT

Congress Passes Emergency Financial Legislation

Today, the House passed the Emergency Economic Stabilization Act by a vote of 263-171.  The House adopted the Senate version of the bill, which the Senate adopted this past Wednesday.  The bill will now proceed to the President, who has been strongly lobbying for passage of the measure throughout the week. 

Once the President signs the bill into law, the advocacy effort will shift to the Treasury Department.  The Treasury Department is authorized to “prescribe such guidance, rules, or regulations as are necessary to carry out” the financial bailout. Further, the Treasury Department will be required to issue “program guidelines” within 45 days of enactment or within 2 days after the first asset purchase.  These guidelines must include, at a minimum:

• (1) Mechanisms for purchasing troubled assets.
• (2) Methods for pricing and valuing troubled assets.
• (3) Procedures for selecting asset managers.
• (4) Criteria for identifying troubled assets for purchase.

To see the full text of the bill, click here.