Introduction of the rescue plan will be phased, beginning with an initial authorisation for the US Treasury to purchase immediately up to $250 billion in “troubled assets.”

At the request of the president, this can be increased to $350 billion.

The plan gives Congress a veto power over purchases above that limit and sets a ceiling for all purchases of $700 billion.

Gives taxpayers an ownership stake in companies that take advantage of the bailout, raising the possibility of the public making profits if market conditions improve or of recovering some assets if participating companies.

Eventual profits from the sale of government-owned assets will be used to retire federal debt, with a portion set aside for a federal housing authority.

If the sale of assets purchased under the plan does not fully cover the cost of the bailout within five years, the shortfall will be made up by financial institutions that benefited from the bailout.

Calls on the Treasury secretary to coordinate with foreign financial authorities and central banks about establishing similar rescue programmes.

No “golden parachutes” for CEOs or other executives who lose or leave their jobs at companies participating in the plan as long as the Treasury holds equity in those firms.

Limits CEO bonuses or other compensation deemed to encourage unnecessary risk-taking.

Recovers bonuses paid based on expected gains that turn out to be false or inaccurate.

Implementation of the plan by the US Treasury will be overseen by a board, including the chairman of the Federal Reserve, the Treasury secretary and the chairman of the Securities and Exchange Commission -- the Wall Street regulator.

A presence for Congressional watchdog the General Accounting Office at the US Treasury Department to oversee the programme and conduct audits.

Gives government the power to renegotiate terms of mortgages it purchases to ease pressure on homeowners facing foreclosure.

To overcome opposition to the government’s initial Wall Street bailout plan among conservative Republicans and some Democrats, the final version of the law included $150 billion in tax break extensions for middle class families and businesses and a number of new spending initiatives.—AFP