From a D.C. source close to the Hill negotiations:
Agreement on Principles
1. Taxpayer Protection
a. Requires Treasury Secretary to set standards to prevent
excessive or inappropriate executive compensation for participating companies
b. To minimize risk to the American taxpayer, requires that any
transaction include equity sharing
c. Requires most profits to be used to reduce the national debt
2. Oversight and Transparency
a. Treasury Secretary is prohibited from acting in an arbitrary or
capricious manner or in any way that is inconsistent with existing law
b. Establishes strong oversight board with cease and desist
authority
c. Requires program transparency and public accountability through
regular, detailed reports to Congress disclosing exercise of the Treasury Secretary's authority
d. Establishes an independent Inspector General to monitor the use
of the Treasury Secretary's authority
e. Requires GAO audits to ensure proper use of funds, appropriate
internal controls, and to prevent waste, fraud, and abuse
3. Homeownership Preservation
a. Maximize and coordinate efforts to modify mortgages for
homeowners at risk of foreclosure
b. Requires loan modifications for mortgages owned or controlled by
the Federal Government
c. Directs a percentage of future profits to the Affordable
Housing Fund and the Capital Magnet Fund to meet America's housing needs
4. Funding Authority
a. Treasury Secretary's request for $700 billion is authorized,
with $250 billion available immediately and an additional $100 billion released upon his or her certification that funds are needed
b. The final $350 billion is subject to a Congressional joint
resolution of disapproval
