A source just sent us a copy of the working draft of the bailout plan circulating, as of about two hours ago, in the House.*
Based on our quick look, it includes a strong provision for congressional oversight, limits executive pay, and would allow bankruptcy judges to adjust mortgages in order to help homeowners, among other items. In other words, the major Democratic priorities.
Things have been changing so quickly on the Hill — even before McCain’s dramatic announcement — that there’s no telling what’s occurred in the intervening period.
The source, who’s a well-connected Democratic lobbyist, added in an email to TPMmuckraker that “the deal on the “bail out” is 98 percent done. Treasury has capitulated on almost every point. A draft is circulating on the Hill now. No one needs McCain to help do the remaining 2 percent.”
Late Update: As we should have mentioned earlier, the draft plan also contains a provision designed to “maximiz[e] taxpayer benefits” by requiring that the Treasury “obtain warrants” (i.e. stock futures) if it makes a direct purchase of a company. That’s intended to ensure that taxpayers get a share of any future profits, and it’s another element Democrats have been insisting on.
*Ed. Note: A well-placed Hill source subsequently tells us that this version has actually been circulating for a couple of days, and that while it’s still mostly operative, it is not the latest iteration of the alternative to the Bush plan.