Here’s something interesting to note from the raft of bills introduced when Congress returned briefly after the election: A bunch of ‘em were about the financial services bailout. Mostly in the Senate, but with a few examples in the House, bills were introduced to manage how the bailout would work.

Here’s the problem with that: The bailout bill already passed. It’s not in Congress’ control any more. Any bills introduced to affect the bailout amount to trying to lick up spilled milk. Congress is supposed to debate legislation before it passes, not after.

So let’s take a look at the bills and the Senators and Members of Congress who introduced them.

It’s most interesting to see who voted for the bailout, but came up with ideas for how it should work later. That amounts to a confession of voting for a bill without thinking it all the way through, a big no-no when $700 billion in taxpayer money is on the line.

Here are the post-bailout bailout bills, with their sponsors:

(more…)

A good number of bills have been introduced this week to distribute blame and respond to the financial crisis triggered by the failure of the government-sponsored home mortgage enterprises.

“Wakerider” legislation - bills that follow the headlines - deserve some skepticism because the time is ripe for political posturing and other silliness, but some of the bills coming forward might be good.

From the posturing department, there’s H.R. 6987. It would require corporate officers of companies to repay their bonuses during years in which their companies are subject to a taxpayer bailout, and the two preceding years as well.

Fine. We get it. Corporate compensation is high. But even the millions and millions paid to corporate executives is an infinitesimal fraction of the losses at stake in the financial crisis.

Maybe the public needs this symbolism, but I’d rather see Congress put its energy into getting its own house in order. It will be spending hundreds of billions of dollars without oversight this week or next (beyond the financial services bailout money) simply because it didn’t follow regular processes for budgeting and allocating its own spending this year.

From the “Hurry! Close the barn door!” department, there’s H.R. 6853 and S. 3547. The House bill would establish a Nationwide Mortgage Fraud Task Force Act in the FBI. The House passed it on Monday. The Senate bill would create a Nationwide Mortgage Fraud Coordinator.

Hmmmm. What about having a “Countrywide” Mortgage Fraud Coordinator to look into the sweetheart mortgage deals some Senators were allegedly getting from that firm? - but that was news a few months ago, wasn’t it. We’ve all forgotten. (Someone hasn’t: S. 3542 was introduced yesterday to require full disclosure of the terms of home mortgages held by Members of Congress.)

From the “Wha’ happan’?” department, there’s H.R. 6990. It would establish an independent Fannie Mae and Freddie Mac Investigative Commission to investigate the officers and directors at Fannie Mae and Freddie Mac responsible and the decisions that led to the enterprises’ financial instability.

If this thing goes, it had better look at the policy - the implied government backing to these behemoths. The ‘public-private partnership’ - so often such a celebrated concept - is why we’re paying such a huge price now. Maybe “public-private” will come to be recognized as “public losses, private profits.”

And from the “This May Make Some Sense” department, there’s H.R. 6986, which would raise the maximum Federal deposit insurance coverage to $200,000. This seems to update the amounts covered by federal deposit insurance not in response to the crisis, but in response to the possibility that it could be needed. Nice to see someone possibly getting ahead of the curve, rather than following along behind it. But I have to say “least bad” is not high praise . . .

Here’s another “wakerider” bill - legislation introduced on the heels of a newsworthy event - dealing with the collapse of Fannie Mae and Freddie Mac (discussed earlier here and here):

S. 3471, a bill to prohibit government-sponsored enterprises from making lobbying expenditures, political contributions, or other certain contributions. (I’m sure they meant “certain other” contributions.)

This is good, though. Part of the way these organizations shifted the risk of loss to the taxpayer (i.e. you) was by lobbying like crazy, spending something like $174 million on it over the last ten years.

Now, this bill is obviously too little too late. The damage is done and the new regulatory overseer of the Macs has reportedly said “All political activities, including all lobbying, will be halted immediately.” But maybe putting in law will make sure that stays true.

Here’s the current vote on S. 3471. Click to vote, comment, learn more, and edit the wiki article about the bill.