Obviously some of the Mortgages that were in these portfolios are the Mortgages that People need help with because they are delinquent on Payments, or are in Foreclosure or have been foreclosed upon. Then I ask why is this crisis funding is not aimed at helping the People with incomes less than $250,000 in Foreclosure or just behind on their Payments? If they are helped, it will reestablish confidence and value in our Financial Institutions as well as providing a constant flow of new liquidity through on time payments? Because what was bad paper can again be made whole by allowing individuals to demonstrate they can make X payment for X number of years which would re-establish real value. If those people who are behind on their payments or are in Foreclosure, can afford the new Payment and Fixed Interest Rate, if FHA would Insure those rewritten Mortgages, would that not be a “Win-Win” solution to the Problem.
1. I would put all of the Old Regulations that were in place under FDR to regulate the Financial Industries back in place again. I would create new Laws to regulate all the New Products that the Financial Industry has created. I would create a law that would require Prior approval from the Treasury Department before they could bring any New Product to market.
2.I would pass a law putting a Cap on all Executive Compensation for every Corporation, Company and Institution in this Country. It would be a very simple one. “No executive can be compensated more that 40 times the average paid employee in the firm. (That includes all Benefits.)
3. I would outlaw all “Golden Parachutes.” For any company that wants to do business here in the USA I will not accept Corporations that move off shore just to avoid this provision.
4. The only Incentive Program I would allow would be based upon The Financial Profit of the Firm.
5. The only way an Executive could get a Bonus would be based upon 5% of the NET PROFIT of the Firm. This Bonus Money would be divided amongst the Executives of said Company and no executive would have total income that exceeds 60 times the average employees compensation. Surplus Net Capital must be returned to the investors as a dividend on Shares held.
6. I would cap what Credit card Companies could charge for Interest Rates at 12%, with a Max Late Fee of $25 the first month. The could not use the Late Fee to collect another Late Fee the following month, They could not charge Interest on Late Fees.
7.I would freeze every Foreclosure on a primary residence for 180 days. I would require that every Financial Institution that is holding directly or indirectly a Mortgage that is in Foreclosure or in default, to rewrite the existing Mortgage, taking into consideration the following;
a. Ability to pay they must have a verifiable job.
b. Refinance at the Fair Market Value of the Property on today’s Market up to 95% of the value of the property currently under contract with a mortgage holder, that the bank and investor holding the original note be allowed to write of any loss from the original mortgage for only the principle less any upfront fees that are lost.
c. Provide a Fixed Interest Rate of 5.25% with a 30 Year term NO ARMS under any circumstances. Interest rates may only rise when the Crisis Fund has fully recovered all investments and made whole.
d. The Government would provide FHA insurance for these loans.
8.I would require Financial Institutions receiving government funding, to put up shares to the Crisis fund in the Company, based upon Due Diligence of their Assets and the amount of the loans. As the loses were repaid by either the renegotiated terms or through the enhanced revenues obtained as Share prices rise the Shares will be surrendered at Par Value to the Financial institution.
9. I would establish a permanent crisis fund to be administered by the US Treasury in conjunction with the Federal Reserve and fund it in the following way. Further I would require the find to maintain reserves equal to 3% of GDP to be re-assesses every 3 years
A. I would look at the Tax codes with a fine toothcomb. I would eliminate all the write offs that are aimed at anyone who makes over 1 million dollars also all those that were aimed at Corporations, that were not designed to help a Corporation expand in this Country and provide more jobs. The additional revenues would go directly to the crisis relief fund.
B. I would double the Taxes on any income in excess of 1 million dollars a year, and I would place additional taxes on none compensation revenues for top2% of taxpayers equal to 75% of the top tax rate until the Crisis Fund was fully repaid and the GDP based reserve fund was fully achieved Sunset provisions would only apply for the period that the fund was at 100% if the fund falls below the bench marks the Taxes would be automatically reimposed.
C. I would eliminate all taxes and with holding for anyone who made under $25,000 a year. And any couple or head of household with dependents under $40,000 would have no withholdings and no tax.
D. I would create an incentive program within the Tax Code to give an extra 50% write-offs to Companies, Corporations and Institutions that were making investments in Research and Development based in the United States and that are expanding Facilities in this Country, and were hiring new Employees from the United States.
E. We must do away with all write offs for any mortgage Interest on other than your Primary home, which you must live in more than 51% of the year.
10. I would give a direct Command to the Attorney General to actively pursue all Fraud and Corruption charges against any Individual and Company, Corporation and Institution. I would like to see a Specific Unit within the Justice Department set up to do this with leadership from Outside counsel set up as a “Special Prosecutor” to investigate the Mortgage industry for such fraud both in the writing of original mortgages that had no basis of success and for the industry executives who were involved in the bundling of these mortgages into securities that miss represented them.
11. I would propose a change that would create a new criminal category dealing with this Fraud and require Mandatory Sentencing for the Violation of these Laws. Leave it up to the Jury to decide Guilt or Innocence. I would also like to see Prosecutors limited to how much they can reduce sentences for plea-bargaining to only 50% of the Maximum sentence.
12. I would like to see all ” NAKED SHORT-SELLING” outlawed or made a federal crime.
13.I would create a law that would allow the Civil Courts and Individuals to seek redress of loses suffered as a result of forced foreclosure or bankruptcy as a result of such fraud and that in a finding for the individual the courts be allowed to seize where necessary the Personal Property and holdings of any Executive of a company that committed fraud.
By doing it this way creating a Crisis Fund we would provide relief for Main Street and begin to rebuild from the Bottom Up not the top down currently proposed. It may or may not cost less money up front but provides the greatest likelihood of repayment for the Taxpayers and establish a fund that would be held to deal with any future events with out risking Main Streets money and resources. I believe that it would make the Financial System much more secure and stable and bring credibility to the Mortgage industry. Reestablishing creditability will be critical to attracting investments in the US Economy and provide the life’s blood that drives our. Curren
tly the proposals thus far do nothing to change the feeling that we are unreliable or incapable of paying our bills it only seeks to make whole the investors who are currently holding what the street believes is worthless it does not deal with the problem of believability or confidence in our systems. This proposal will.
This maybe just a good start what are you hearing and what are your suggestions? We need to have a plan to move forward if and when the Paulson plan goes bust.
Best to All