Legislative Proposal for Treasury
Authority to Purchase Mortgage-Related Assets
Section 1. Short Title.
This Act may be cited as "THE
GREAT BUYOUT".
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 (THAT'S A LOT OF 0'S) 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.
(THAT'S A LOT OF ZEROS)
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.
So what else can we do?
Leave it alone and let it drop?
Give a little $ at a time?
A buck fifty for your
thoughts.
Leave your comments, but keep your
dollars in the mattress.
