Brad Sherman (D-Cal) states Bailout to to help Foreign Banks

Video Link (CNBC)

This is just UNBELIEVABLE! I had a sneaking feeling that this was the case when I read this from the Bailout Bill...

Bailout Bill

SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS. The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101.

So, if the foreign banks or lending institutions (who also made money by repackaging bad assets with good assets) bought the American bad stuff, The Sec. of the Treasury can give them US tax dollars and help bail them out as well.

I think I am gonna be sick...

At least it seemed that there was some measure of equal time given to both sides of the issue, as well as a couple of good talking points coming out. This is the second time today I have heard something about amending the capital gains tax as a measure to offset the fear and push the bill through.
I agree with the counterpoint though, that none of this money should be used to repair late entry, corrupt foreign investments and certainly none of it to the central banks. He noted the Shanghai Bank possibly trying to pawn its damaged goods off through this bill by shifting that to the US based subsidiary, which is utter bull-poo.

“As the Treasury Secretary, my goal is to promote the conditions for American prosperity and economic growth – this Administration is working to keep our economy strong for our workers, our families, and our businesses.” - Secretary Henry M. Paulson, Jr.

source

That was the statement made following his swearing in as Secretary of the Treasury in 2006. Since then, it seems that he must have had his fingers crossed and holding back his giggling delight because he has been instrumental in leading us down this road and now wants to just hand over billions of US taxpayer dollars to foreign banks, corrupt corporate elites, and line the pockets of those that do his bidding, all the while lying about his actions to everyone that asks him what he is/was doing.

Can we get rid of this guy and this bogus bill already? Let the market sort itself out and let those spoiled fatcats feel the pinch for a change. I am tired of living on "rice and beans" [D.Ramsey], I want to "eat cake" [L.Black].

Flag flag flag!!!
This is a big deal!

Bush is threatening to veto the bailout bill if it passes with language explicitly forbidding foreign banks transferring their investments in toxic mortgages to US based banks for bailout.

Some Congressmen/Senators want to remove or completely change the text of:

SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS.

The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101.

Here's a writeup on the bailout of foreign investors. Everyone who pays taxes in America should be mad as hell about this.

Market Ticker
Notice that conspicuously missing from the definition is the requirement that the asset's underlying thing (that is, the property that was mortgaged, etc) lies within the United States. Also note that Treasury must tell Congress if they add "new types" of debt, but that Congress has no right of review or censure.

That is, it is perfectly legitimate under the bill for a foreign bank to sell or swap any "crap sandwich" it may hold (irrespective of how or where it originated, so long as a mortgage is the basis for it somewhere) with a bank domiciled in the United States, and said bank may then "PUT" it into the TARP.

Note also that Representative Sherman said on Kudlow last night that when this was raised with Secretary Paulson he was told that if Congress tried to restrict the ability of the Secretary to purchase assets "laundered" in this fashion from foreigners, that the bill would be vetoed.

It is also important to note how "Troubled Assets" are defined by this bill.

TROUBLED ASSETS.—The term ‘‘troubled assets’’ means— (A) 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 March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress.

This is wrong people, and there is no way to stop the Sec. of the Treasury from buying these "troubled assets" with our tax dollars if this thing passes. No matter where the troubled assets are.