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FACTBOX-Outline of U.S. Congress' draft bailout plan

 Sept 27 (Reuters) - U.S. lawmakers pressed forward on
Saturday with talks over a proposed massive financial system
bailout, hoping to nail down an agreement by Sunday.
 The Bush administration last week asked Congress to give
the Treasury secretary authority to buy up to $700 billion in
bad assets from banks and other companies in a bid to ease the
most serious U.S. financial crisis since the Great Depression.
 Following are provisions compromise legislation is expected
to incorporate, based on a draft bill and comments from
lawmakers about the state of negotiations.
 - The bill would create a Troubled Assets Relief Program
(TARP) to purchase mortgage-related assets originated or issued
on or before March 14, or any assets if needed to promote
financial stability.
 - $700 billion overall to be authorized in installments of
 $250 billion. That could be increased to $350 billion upon
notification to Congress by the president.
 - Assets could be purchased from any financial institution
having significant operations in the United States.
 - Government to get warrants for equity in participating
companies as a way of protecting taxpayers and allowing them to
benefit from any profit gains.
 - Foreclosure mitigation for Americans at risk of losing
home. However, a provision House Democrats had sought to help
save homes in bankruptcy proceedings has been dropped.
 - Restrictions on executive compensation at companies that
participate.
 - Incorporates House Republican proposal to allow for
private-sector funded mortgage insurance program as an option
for Treasury secretary.
 - Financial Stability Oversight Board comprised of the
chairmen of the Federal Reserve, Securities and Exchange
Commission and Federal Deposit Insurance Corp, and two members
appointed by Congress to oversee activities of the program.
 - Requires a government investigation into causes of
crisis, with report delivered to Congress by June 2009.
 - Regular and detailed reports on transactions and other
activities under the rescue program.
 - Establishes a congressional oversight panel that would
also submit a report on regulatory reform no later than Jan.
20, 2009, the date a new president takes office.
 - Would direct 20 percent of any future profits from the
bailout fund to the Affordable Housing Fund and the Capital
Magnet Fund to meet U.S. housing needs. House Republicans,
however, have made clear they oppose this provision.
 - Authorizes a temporary money market mutual fund guarantee
program for up to one year. Requires U.S. Treasury to restore
any funds to the Exchange Stabilization Fund that had been used
for that purpose and prohibits their further use.
 - Requires federal financial regulatory agencies to
cooperate with federal law enforcement to investigate fraud or
misrepresentation with respect to financial products.
 - Investors who sold preferred stock in mortgage finance
giants Fannie Mae FNM.N and Freddie Mac FRE.N, between Jan.
1, 2008, and before Sept. 7, 2008, to pay higher ordinary
income taxes on any gains rather than the lower capital gains
tax. The government announced the seizure of Fannie Mae and
Freddie Mac on Sept. 7.
 (Compiled by Reuters' Washington bureau, editing by Patricia
Zengerle)

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