The legislation authorizes the Treasury Secretary to immediately use up to $250 billion to purchase distressed assets from institutional investors. If needed, the secretary may then access an additional $100 billion to purchase these distressed assets but only with presidential approval.
An additional $350 billion may be accessed if the president transmits a written report to Congress requesting the funds. The Treasury Secretary may use this additional authority unless Congress passes a joint resolution of disapproval within 15 days.
The legislation includes a number of provisions to ensure oversight by Congress and accountability to the taxpayers, including prohibitions on executive compensation to ensure bad actors are not rewarded. Specifically, companies that receive more than $300 million from this plan will have limits placed on their top five executives. These limits include a ban from receiving a “golden parachute” as well as limits in the tax deductions they can take on compensation over $500,000.
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