Monday, September 29, 2008


IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations
-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor
---------------------- Stuart Basefsky
New York, NY 10016
-------------------------------Director, IWS News Bureau

Congressional Budget Office (CBO)

Cost Estimate on Emergency Economic Stabilization Act of 2008 [28 September 2008]
Letter to the Honorable Barney Frank
[full-text, 7 pages]

The Congressional Budget Office (CBO) has reviewed the Emergency
Economic Stabilization Act of 2008, as released by the House Committee on
Financial Services on September 28, 2008. The legislation would, among other
provisions, create a Troubled Assets Relief Program (TARP), under which the
Secretary of the Treasury would be authorized to purchase, insure, hold, and
sell a wide variety of financial instruments, particularly those that are based on
or related to residential or commercial mortgages issued prior to March 14,
2008. Under the legislation, the authority to enter into agreements to purchase
such troubled assets would initially be set to expire on December 31, 2009, but
could be extended through two years from the date of enactment upon
certification by the Secretary that such an extension is necessary.

The bill would appropriate such sums as are necessary, for as many years as
necessary, to enable the Secretary to purchase or insure troubled assets and to
cover all administrative expenses of purchasing, insuring, holding, and selling
those assets. The purchase price of all such assets outstanding at any one time
could not exceed $700 billion (though cumulative gross purchases could
exceed $700 billion as previously purchased assets are sold). Purchases would
be limited as follows:

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       

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