In the Senate of the United States, 
October 1 (legislative day, September 17), 2008. 
Resolved, That the bill from the House of Representa-
tives (H.R. 1424) entitled ‘‘An Act to amend section 712 of 
the Employee Retirement Income Security Act of 1974, sec-
tion 2705 of the Public Health Service Act, section 9812 of 
the Internal Revenue Code of 1986 to require equity in the 
provision of mental health and substance-related disorder 
benefits under group health plans, to prohibit discrimination 
on the basis of genetic information with respect to health in-
surance and employment, and for other purposes.’’, do pass 
with the following 
AMENDMENTS: 
Strike all after the enacting clause and insert the 
following: 
DIVISION A—EMERGENCY 
ECONOMIC STABILIZATION 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Emergency Economic Stabilization Act of 2008’’.
(b) TABLE OF CONTENTS.—The table of contents for 
this division is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Purposes. 
Sec. 3. Definitions. 
TITLE I—TROUBLED ASSETS RELIEF PROGRAM 
Sec. 101. Purchases of troubled assets. 
Sec. 102. Insurance of troubled assets. 
Sec. 103. Considerations. 
Sec. 104. Financial Stability Oversight Board. 
Sec. 105. Reports. 
Sec. 106. Rights; management; sale of troubled assets; revenues and sale proceeds. 
Sec. 107. Contracting procedures. 
Sec. 108. Conflicts of interest. 
Sec. 109. Foreclosure mitigation efforts. 
Sec. 110. Assistance to homeowners. 
Sec. 111. Executive compensation and corporate governance. 
Sec. 112. Coordination with foreign authorities and central banks. 
Sec. 113. Minimization of long-term costs and maximization of benefits for tax-
payers. 
Sec. 114. Market transparency. 
Sec. 115. Graduated authorization to purchase. 
Sec. 116. Oversight and audits. 
Sec. 117. Study and report on margin authority. 
Sec. 118. Funding. 
Sec. 119. Judicial review and related matters. 
Sec. 120. Termination of authority. 
Sec. 121. Special Inspector General for the Troubled Asset Relief Program. 
Sec. 122. Increase in statutory limit on the public debt. 
Sec. 123. Credit reform. 
Sec. 124. HOPE for Homeowners amendments. 
Sec. 125. Congressional Oversight Panel. 
Sec. 126. FDIC authority. 
Sec. 127. Cooperation with the FBI. 
Sec. 128. Acceleration of effective date. 
Sec. 129. Disclosures on exercise of loan authority. 
Sec. 130. Technical corrections. 
Sec. 131. Exchange Stabilization Fund reimbursement. 
Sec. 132. Authority to suspend mark-to-market accounting. 
Sec. 133. Study on mark-to-market accounting. 
Sec. 134. Recoupment. 
Sec. 135. Preservation of authority. 
Sec. 136. Temporary increase in deposit and share insurance coverage. 
TITLE II—BUDGET-RELATED PROVISIONS 
Sec. 201. Information for congressional support agencies. 
Sec. 202. Reports by the Office of Management and Budget and the Congressional 
Budget Office. 
Sec. 203. Analysis in President’s Budget. 
Sec. 204. Emergency treatment.
TITLE III—TAX PROVISIONS 
Sec. 301. Gain or loss from sale or exchange of certain preferred stock. 
Sec. 302. Special rules for tax treatment of executive compensation of employers 
participating in the troubled assets relief program. 
Sec. 303. Extension of exclusion of income from discharge of qualified principal 
residence indebtedness. 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to immediately provide authority and facili-
ties that the Secretary of the Treasury can use to re-
store liquidity and stability to the financial system of 
the United States; and 
(2) to ensure that such authority and such facili-
ties are used in a manner that— 
(A) protects home values, college funds, re-
tirement accounts, and life savings; 
(B) preserves homeownership and promotes 
jobs and economic growth; 
(C) maximizes overall returns to the tax-
payers of the United States; and 
(D) provides public accountability for the 
exercise of such authority. 
SEC. 3. DEFINITIONS. 
For purposes of this Act, the following definitions shall 
apply: 
(1) APPROPRIATE COMMITTEES OF CONGRESS.— 
The term ‘‘appropriate committees of Congress’’ 
means—
(A) the Committee on Banking, Housing, 
and Urban Affairs, the Committee on Finance, 
the Committee on the Budget, and the Committee 
on Appropriations of the Senate; and 
(B) the Committee on Financial Services, 
the Committee on Ways and Means, the Com-
mittee on the Budget, and the Committee on Ap-
propriations of the House of Representatives. 
(2) BOARD.—The term ‘‘Board’’ means the 
Board of Governors of the Federal Reserve System. 
(3) CONGRESSIONAL
SUPPORT
AGENCIES.—The 
term ‘‘congressional support agencies’’ means the Con-
gressional Budget Office and the Joint Committee on 
Taxation. 
(4) CORPORATION.—The term ‘‘Corporation’’ 
means the Federal Deposit Insurance Corporation. 
(5) FINANCIAL INSTITUTION.—The term ‘‘finan-
cial institution’’ means any institution, including, 
but not limited to, any bank, savings association, 
credit union, security broker or dealer, or insurance 
company, established and regulated under the laws of 
the United States or any State, territory, or posses-
sion of the United States, the District of Columbia, 
Commonwealth of Puerto Rico, Commonwealth of 
Northern Mariana Islands, Guam, American Samoa,
or the United States Virgin Islands, and having sig-
nificant operations in the United States, but exclud-
ing any central bank of, or institution owned by, a 
foreign government. 
(6) FUND.—The term ‘‘Fund’’ means the Trou-
bled Assets Insurance Financing Fund established 
under section 102. 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(8) TARP.—The term ‘‘TARP’’ means the Trou-
bled Asset Relief Program established under section 
101. 
(9) TROUBLED ASSETS.—The term ‘‘troubled as-
sets’’ means— 
(A) residential or commercial mortgages 
and any securities, obligations, or other instru-
ments that are based on or related to such mort-
gages, that in each case was originated or issued 
on or before March 14, 2008, the purchase of 
which the Secretary determines promotes finan-
cial market stability; and 
(B) any other financial instrument that the 
Secretary, after consultation with the Chairman 
of the Board of Governors of the Federal Reserve 
System, determines the purchase of which is nec-
essary to promote financial market stability, but 
only upon transmittal of such determination, in 
writing, to the appropriate committees of Con-
gress. 
TITLE I—TROUBLED ASSETS 
RELIEF PROGRAM 
SEC. 101. PURCHASES OF TROUBLED ASSETS. 
(a) OFFICES; AUTHORITY.— 
(1) AUTHORITY.—The Secretary is authorized to 
establish the Troubled Asset Relief Program (or 
‘‘TARP’’) to purchase, and to make and fund com-
mitments to purchase, troubled assets from any finan-
cial institution, on such terms and conditions as are 
determined by the Secretary, and in accordance with 
this Act and the policies and procedures developed 
and published by the Secretary. 
(2) COMMENCEMENT
OF
PROGRAM.—Establish-
ment of the policies and procedures and other similar 
administrative requirements imposed on the Secretary 
by this Act are not intended to delay the commence-
ment of the TARP. 
(3) ESTABLISHMENT OF TREASURY OFFICE.— 
(A) IN GENERAL.—The Secretary shall im-
plement any program under paragraph (1) 
through an Office of Financial Stability, estab-
lished for such purpose within the Office of Do-
mestic Finance of the Department of the Treas-
ury, which office shall be headed by an Assistant 
Secretary of the Treasury, appointed by the 
President, by and with the advice and consent of 
the Senate, except that an interim Assistant Sec-
retary may be appointed by the Secretary. 
(B) CLERICAL AMENDMENTS.— 
(i) TITLE 5.—Section 5315 of title 5, 
United States Code, is amended in the item 
relating to Assistant Secretaries of the 
Treasury, by striking ‘‘(9)’’ and inserting 
‘‘(10)’’. 
(ii) TITLE 31.—Section 301(e) of title 
31, United States Code, is amended by 
striking ‘‘9’’ and inserting ‘‘10’’. 
(b) CONSULTATION.—In exercising the authority under 
this section, the Secretary shall consult with the Board, the 
Corporation, the Comptroller of the Currency, the Director 
of the Office of Thrift Supervision, the Chairman of the Na-
tional Credit Union Administration Board, and the Sec-
retary of Housing and Urban Development. 
(c) NECESSARY ACTIONS.—The Secretary is author-
ized to take such actions as the Secretary deems necessary
to carry out the authorities in this Act, including, without 
limitation, the following: 
(1) The Secretary shall have direct hiring au-
thority with respect to the appointment of employees 
to administer this Act. 
(2) Entering into contracts, including contracts 
for services authorized by section 3109 of title 5, 
United States Code. 
(3) Designating financial institutions as finan-
cial agents of the Federal Government, and such in-
stitutions shall perform all such reasonable duties re-
lated to this Act as financial agents of the Federal 
Government as may be required. 
(4) In order to provide the Secretary with the 
flexibility to manage troubled assets in a manner de-
signed to minimize cost to the taxpayers, establishing 
vehicles that are authorized, subject to supervision by 
the Secretary, to purchase, hold, and sell troubled as-
sets and issue obligations. 
(5) Issuing such regulations and other guidance 
as may be necessary or appropriate to define terms 
or carry out the authorities or purposes of this Act. 
(d) PROGRAM GUIDELINES.—Before the earlier of the 
end of the 2-business-day period beginning on the date of 
the first purchase of troubled assets pursuant to the author-
ity under this section or the end of the 45-day period begin-
ning on the date of enactment of this Act, the Secretary 
shall publish program guidelines, including the following: 
(1) Mechanisms for purchasing troubled assets. 
(2) Methods for pricing and valuing troubled as-
sets. 
(3) Procedures for selecting asset managers. 
(4) Criteria for identifying troubled assets for 
purchase. 
(e) PREVENTING UNJUST ENRICHMENT.—In making 
purchases under the authority of this Act, the Secretary 
shall take such steps as may be necessary to prevent unjust 
enrichment of financial institutions participating in a pro-
gram established under this section, including by pre-
venting the sale of a troubled asset to the Secretary at a 
higher price than what the seller paid to purchase the asset. 
This subsection does not apply to troubled assets acquired 
in a merger or acquisition, or a purchase of assets from 
a financial institution in conservatorship or receivership, 
or that has initiated bankruptcy proceedings under title 11, 
United States Code. 
SEC. 102. INSURANCE OF TROUBLED ASSETS. 
(a) AUTHORITY.— 
(1) IN GENERAL.—If the Secretary establishes the 
program authorized under section 101, then the Sec-
retary shall establish a program to guarantee troubled 
assets originated or issued prior to March 14, 2008, 
including mortgage-backed securities. 
(2) GUARANTEES.—In establishing any program 
under this subsection, the Secretary may develop 
guarantees of troubled assets and the associated pre-
miums for such guarantees. Such guarantees and pre-
miums may be determined by category or class of the 
troubled assets to be guaranteed. 
(3) EXTENT OF GUARANTEE.—Upon request of a 
financial institution, the Secretary may guarantee 
the timely payment of principal of, and interest on, 
troubled assets in amounts not to exceed 100 percent 
of such payments. Such guarantee may be on such 
terms and conditions as are determined by the Sec-
retary, provided that such terms and conditions are 
consistent with the purposes of this Act. 
(b) REPORTS.—Not later than 90 days after the date 
of enactment of this Act, the Secretary shall report to the 
appropriate committees of Congress on the program estab-
lished under subsection (a). 
(c) PREMIUMS.— 
(1) IN
GENERAL.—The Secretary shall collect 
premiums from any financial institution partici-
pating in the program established under subsection
(a). Such premiums shall be in an amount that the 
Secretary determines necessary to meet the purposes 
of this Act and to provide sufficient reserves pursuant 
to paragraph (3). 
(2) AUTHORITY TO BASE PREMIUMS ON PRODUCT 
RISK.—In establishing any premium under para-
graph (1), the Secretary may provide for variations 
in such rates according to the credit risk associated 
with the particular troubled asset that is being guar-
anteed. The Secretary shall publish the methodology 
for setting the premium for a class of troubled assets 
together with an explanation of the appropriateness of 
the class of assets for participation in the program es-
tablished under this section. The methodology shall 
ensure that the premium is consistent with paragraph 
(3). 
(3) MINIMUM LEVEL.—The premiums referred to 
in paragraph (1) shall be set by the Secretary at a 
level necessary to create reserves sufficient to meet an-
ticipated claims, based on an actuarial analysis, and 
to ensure that taxpayers are fully protected. 
(4) ADJUSTMENT TO PURCHASE AUTHORITY.— 
The purchase authority limit in section 115 shall be 
reduced by an amount equal to the difference between 
the total of the outstanding guaranteed obligations