[DISCUSSION DRAFT] To provide authority for the Federal Government to purehase and insure certain types of troubled assets for the purposes of providing stability to and preventing disruption in the economy and financial system and protecting taxpayers, and for other purposes. IN THE HOUSE OF REPRESENTATIVES M introduced the following bill; which was referred to the Committee on A BILL ‘To provide authority for the Federal Government to purchase and insure certain types of troubled assets for the pur- poses of providing stability to and preventing disruption in the economy and finaneial system and protecting tax- payers, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3. SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 4 (a) Suorr TrrLE.—This Act may be cited as the 5. “Emergency Eeonomic Stabilization Act of 2008”.1 2 (b) Tabte OF CoNTENTS.—The table of contents for 2 this Act is as follows: 1. Short title and table of contents, 2. Purposes: 3. Definitions, ‘TITLE TROUBLED ASSETS RELIEF PROGRAM 101. Purehases of troubled assets. 102. Insuranee of troubled assets, 108. Considerations 104. Financial Stability Oversight Board 109. Reports. 106. Rights; management; sale of troubled assets; revenues and sale pro- ved 107. Contracting procedures. 108. Confliets of interest, 109. Foreclosure mitigation efforts 110. Assistance to homeowners. 111. Exceutive compensation and corporate governance. 112. Coordination with foreign authorities and central ban 113. Minimization of long-term costs and maximization of benefits for tax- payers 114, Market transpareney. 115, Graduated authorizatic 16. ight and audits M13 ‘and report on margin authority, 118. Funding. 119. Judicial review and related matters 120. Termination of authority 121. Special Inspector General for the Troubled Asset Relief Program, 122. Inerease in statutory limit on the publie debt 128. Credit reform, 124. HOPE for Homeowner 125. Congressional Oversight Panel. 126. FDIC authority 127. Cooperation with the FBI. 128. Acceleration of effective date, 129. Diselosares on exercise of loan authority. 180. Technical eorrections. 181. Exchange Stabilization Fund reimbursement. 182. Authority to suspend mark-to-market accounting. 183. Study on mark-to-market aecounting. 184. Reeonpment. 135. Preservation of authority, to purchase TITLE 1—BUDGET-RELATED PROVISION 201. Information for congressional support agencies 202. Reports by the Office of Management and Budget and the Congres- sional Budget Offie. lysis in President's Budget ot 208. i 204. Emergency treaAYOOSCO4.xm 3 TITLE HI TAX PROVISIONS Sec. 301. Gain or loss from sale or exchange of certain preferred stock, Sec, 302. Special mules for tax treatment of executive compensation of employs crs participating in the troubled assets relief program, Sec. 303. Extension of exclusion of income from discharge of qualiie residence indebtedness principal 1 SEC. 2. PURPOSES. 2 ‘The purposes of this Act are— 3 (1) to immediately provide authority and facili- 4 ties that the Secretary of the Treasury can use to 5 restore liquidity and stability to the financial system 6 of the United States; and 7 (2) to ensure that such authority and such fa- 8 cilities are used in a manner that— 9 (A) proteets home values, college funds, re- 10 tirement accounts, and life savings W (B) preserves homeownership and pro- 12 motes jobs and economic growth; 13 (C) maximizes overall returns to the tax- 14 payers of the United States; and 15 (D) provides public accountability for the 16 exercise of such authority. 17 SEC. 3. DEFINITIONS. 18 or purposes of this Act, the following definitions 19 shall apply: 20 (1) APPROPRIATE COMMITTEES OF CON- 21 GRESS.—The term “appropriate committees of Con- 22 gress” means—