"Under the legislation Treasury will be granted $700 billion in phases to acquire bad mortgage assets from financial institutions at a price it determines or through auction with a market price. If the Treasury decides to take the first option it will have some authority to determine the executive compensation structure of the firm.
If firms sell more than $300 million in assets in the auction, they will lose the ability to deduct the salaries of their top five individuals that have exceeded $500,000. For participating firms there will also be a surtax of 20% on retirement packages of top executives who are involuntarily terminated from their firms, or lose their jobs as a result of the firm's failure."
Sobering quote from Judd Gregg at the end.
"Walking back to his office early Sunday, Gregg told reporters, "Nobody's excited about doing this, but everybody recognizes the alternative to not doing it is so horrific that action needs to be taken." Will it work? We'll see. "
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