Vote on bailout plan expected

TRD New York /
Sep.September 29, 2008 08:36 AM

President Bush spoke in a televised statement this morning, urging members of Congress to pass a revised version of the administration’s $700 billion financial bailout plan, expected to be voted on later today. Negotiations modifying the bill brought sacrifices from all sides: Democrats dropped a push to allow bankruptcy judges to modify mortgages for distressed homeowners; Republicans stopped an effort to require the federal government to insure, rather than buy bad debt; and the administration accepted provisions that limit compensation for outgoing executives at banks. While economists say that the bill would prevent the credit crisis from worsening, many expect it to have more of an immediate positive impact in stock prices than in liquidity at large. Lenders are still going to be hesitant to originate mortgages while home prices are declining, John Lonski of Moody’s says. Mayor Bloomberg highlighted the importance of passing the proposed bill on Friday, saying that without it, “you would literally have the banks closing their doors.” TRD

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Cristiano Moura (Credit: Christie’s Real Estate and iStock)

Viral Instagram post leads to arrest, assault charge for former Christie’s agent

Amazon CEO Jeff Bezos and Hudson Yards (Credit: Getty Images and Wikipedia)

Amazon takes big new office space near Hudson Yards

A&E Real Estate Holdings principal Douglas Eisenberg and the properties (Credit: The Rego Park 18 Portfolio)

Deutsche Bank provided A&E $97M in financing for big Rego Park buy

Billy Macklowe and Key Food at 120 Fifth Avenue in Brooklyn (Credit: Getty Images and Google Maps)

Billy Macklowe looking to break into Brooklyn

From left: Daniel Shirazi, and Robert Khodadadian, with 530 West 25th Street

Feil Organization buys Chelsea office building for $72M