Amended Financial “Bailout” Bill - A Summary

The bill requires the financial industry to reimburse taxpayers for any net losses from the program after 5 years. the Treasury would be allowed to take ownership stakes in participating companies.

The Treasury must set up an insurance program - to be funded with risk-based premiums paid by the industry - to guarantee companies’ troubled assets, including mortgage-backed securities, purchased before March 14, 2008.

The bill places curbs on executive pay for companies receiving help from the Government.

A Financial Stability Board is established including the Federal Reserve chair, the Securities and Exchange Commission chair, the Federal Home Finance Agency Dir., the Housing and Urban Development Sec. and the Treasury Sec.

A congressional oversight panel, to which the Financial Stability Board would report, will have 5 members appointed by House and Senate leadership.

The bill extends a number of renewable energy tax breaks for individuals and businesses, including the purchase of solar panels.

It continues tax breaks including: the research and development credit for businesses and acredit that allows individuals to deduct state and local sales taxes on their federal returns.

In addition, the bill includes relief for another year from the Alternative Minimum Tax.

New accounting rules: The bill underlines the Securities and Exchange Commission’s power to change accounting rules on how banks and Wall Street value securities, and directs the agency to study the issue.

The bill temporarily raises the FDIC insurance cap to $250,000 from $100,000. The bill allows the FDIC to borrow from the Treasury to cover losses that might occur as a result of the higher insurance limit.

The bill calls on federal agencies to encourage loan servicers to modify mortgages - including reducing the principal or interest rate. It also extends a temporary provision that exempts from federal income tax any debt forgiven by a bank to a borrower in a foreclosure.