http://en.wikipedia.org/wiki/Executive_Order_12631
A provision in the bailout bill pending in Congress (Section 131) forbids the Treasury secretary from ever again tapping the $50-billion Exchange Stabilization Fund “for the establishment of any future guaranty programs for the United States money market mutual fund industry.”
With the consent of the President, required by law, Treasury Secretary Henry Paulson tapped the fund to offer insurance to money-market fund investors to stop a run on the funds, which hold well over $3 trillion and are now critical to short-term financial of American business. The Fund, created in 1934, is essentially a war chest for the Treasury to use to defend the U.S. dollar on world currency markets.
The bill also says that a presumably small slice of the $700 billion that the Treasury is authorized to spend on the bailout shall go to reimburse the Exchange Stabilization Fund for anything it ends up spending on money-market funds. The insurance applies only to money in money-market mutual funds as of Sept. 19
http://blogs.wsj.com/economics/2008/09/29/never-again-exchange-stabilization-fund-dept/
Remember Paulson's recomendations from the PPT in March?
1)Stronger transparency and disclosure.
2)Stronger risk awareness on the part of regulators and all market participants.
3)Stronger risk management by all participants.
4)Stronger capital management. Well-capitalized institutions are better prepared to deal with challenges, foster economic growth, and enhance market confidence.
5)Stronger regulatory policies.
6)Stronger market infrastructure. http://www.mortgagenewsdaily.com/3132008_Presidents_Working_Group.asp
Unless you're asking for $700 billion!
But don't cut off your nose to spite your face!
That was the message of the markets to Congress today!
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