Bush while recalling that the whole world watching

The remediation of the banking and financial sector plan proposed by George w. Bush has yesterday welcomed with relief by the representatives of the G7. But in forty-two days of the presidential election, Congress, democratic majority, will not his remains at the level of the outgoing administration, undermined by the crisis, without any control. While adhering to the core of the Paulson plan resumption of bad real estate loans of the banks to 700 billion dollars by the Treasury , the Congress will ask its conditions. In addition to "the protection of taxpayers" sensitive building facing the massive injection of public funds, the Congress seeks a symbolic ceiling of the remuneration of managers of firms in difficulty. In opening, according to several representatives Democrats, US Treasury agreed yesterday to include a component of aid to homeowners and a mechanism of warrants enabling federal authorities to invest in firms in difficulty and to reduce the final invoice of the rescue plan.

Step of blank cheque

"We will not simply issue a blank cheque of 700 billion dollars on Wall Street and hope for a better result", launched (Democrat) President of the House of representatives, Nancy Pelosi, setting the tone of the reserves of the legislature. "Democrats believe that a responsible solution must include an independent supervision, protections for homeowners and limits on excessive remuneration." In clear, to the pressures of the Secretary of State for the Treasury, Henry Paulson, the Democratic majority of the Congress, which is almost guaranteed to strengthen further its position regardless of the winner of the November 4 elections, intends to own paw to the finalisation of a costly bailout plan.

"We want to ask as a condition to limit the compensation of those who will benefit from the aid (...)." "It is the private sector which has plunged us into this crisis," stressed the President of the House of representatives financial services Committee, Barney Frank. Generally, Democrats deplore the lack of control of the bad debt management device and would have preferred the creation of a federal agency to buy these assets to the banks in difficulty. According to the proposed device, the Treasury will have wide latitude to manage the portfolio of mortgages and is even legal immunity. "The Treasury will have full discretion on the management of the assets and the full exercise of all rights acquired in connection with their recovery," said the note of presentation.

Precipitation step

The Bush administration set the urgency of the situation to take the membership of the Congress. "It would be incomprehensible that members of Congress seeking to use the emergency law to pass the provisions without direct relationship or insist on provisions that undermine the effectiveness of the plan", emphasized yesterday George w. Bush, while recalling that "the whole world watching. Indeed, the flexibility of the Democrats, aware of the need not to disappoint financial markets seems relatively limited, even if they keep control of the calendar.

A priori, the Bush administration wants to do everything to get the green light from Congress before the end of the week. But the President of the Senate Finance Committee, Christopher Dodd, said yesterday that this could be "two or three weeks", if necessary, in cautioning the Bush administration against precipitation. Allowing Goldman Sachs and Morgan Stanley to change status to better preserve their independence, the Treasury had already correct, Sunday evening, his assistance plan of $ 50 billion in mutual funds to critics of banks on the risk of a massive transfer of deposits of savers.

The fact that the two candidates to the White House, Barack Obama and John McCain, have instead adopted so far here a bipartisan approach of Paulson limit also necessarily the flexibility of the Democrats.