Bailout would start with $250 billion

Congress would send $250 billion to Wall Street immediately, with the balance of the $700 billion bailout coming later, according to a tentative agreement of principles hashed out Thursday by a group of bipartisan lawmakers. 

Another $100 billion would be released upon at the discretion of the Treasury secretary, and the final $350 billion would be subject to a congressional join resolution of disapproval, according to a copy of the principles obtained by The Hill.

{mosads}Democratic and Republican negotiators announced at a Thursday press conference that they have reached a deal on a set of principles for the proposed bailout.

Senate Banking Committee Chairman Chris Dodd (D-Conn.) said that negotiators will present the principles to President Bush at their meeting with him this afternoon.

“[We’ve] dealt with the issue of oversight, homeowner preservation [and] executive compensation,” Dodd said after emerging from a several-hour meeting with Senate and House negotiators.

The details of the “fundamental agreement” are still being fleshed out, and House Republicans said Thursday that they have yet to sign off on the deal.

As part of the tentative deal, the Treasury secretary would set standards to prevent excessive or inappropriate executive compensation, but an oversight board would have “cease-and-desist authority” and an independent inspector general would monitor the secretary’s authority.

Any money sent to the banks would require “equity sharing” and that most profits be used to reduce the national debt. The agreement did not elaborate on what this means.