A bipartisan group of lawmakers agreed Thursday to the outlines of a $700 billion bailout for the financial industry that makes several substantial changes to President Bush’s request. Key Republicans were still resisting the emerging agreement. Here are its main elements:
- Authorize $700 billion for the government to purchase troubled assets and buy equity in distressed financial firms.
- Require the Treasury Department to make rules to prevent excessive compensation for executives whose companies benefit from the rescue.
- Establish a strong oversight board with authority to halt the program, a special investigator general to monitor it, and regular government audits.
- Require the government to renegotiate mortgages it acquires under the program with the aim of helping borrowers keep their homes.
- Phase in the money for buying troubled assets, with $250 billion available immediately, $100 billion to be released if the Treasury secretary certifies it is needed, and the last $350 billion available with another certification, but subject to a congressional vote to block it.