After the House passed the stop-gap bill on Wednesday and left town until later this month, senators by a voice vote adopted an identical temporary financing resolution.
But on the other, the amendment attached to the appropriations bill could be more popular among those members who felt the financing resolution amounted to back-door authorization.
On the budget impasse, the speaker acknowledged that in July he had gone to the Senate majority leader, Senator Harry Reid, a Nevada Democrat, and offered to have the House pass a clean financing resolution.
A lot to swallow Hot air Back on the catwalk Clearing out the corner office The dog that didn't bark Reprints Related items Reforming finance: Resolution regimes: Fail-safeAug 20th 2009 Reforming finance: Derivatives: Naked fearAug 6th 2009Living wills could certainly help address the sheer bedlam that surrounds a dying bank.
Too big for its Gucci boots Boom, bust, bonanza Data drilling Push the float out Trolls demanding tolls What if? Reprints Related items Reforming finance: Resolution regimes: Fail-safeAug 20th 2009So aggressive has this battle become that courts themselves appear prepared to bend or break the rules to win cases.
However, when Title II is triggered, FDIC can finance the resolution of the covered company through the Orderly Liquidation Fund.
The Orderly Liquidation Fund is a segregated fund at the U.S. Department of the Treasury to finance the resolution of covered financial companies by the FDIC.
(New Republic) The IMF proposes policies to charge banks for public support, including a "Financial Stability Contribution" that would finance a resolution fund, and a "Financial Activities Tax" on profits and compensation that could go to general revenue.
As I've advocated, a similar systemic risk levy to finance a "resolution fund" is being considered in Congress as a way to internalize potential bailout costs stemming from too-big-to-fail institutions.
The government is also pressing banks to sell their nonperforming loans to the government-financed Resolution and Collection Corporation, which, through recent legal changes, was allowed to pay more for bad loans.
Except for the Pentagon and the Department of Homeland Security, the government is being financed under a stopgap resolution.
