The Dodd Option

Senator Chris Dodd, Chairman of the Banking Committee, has just released a legislation draft for the bailout. The text is here if you'd like to spend the rest of your afternoon reading it, lets face it its going to go over most of our heads (or at least make them hurt a little bit) but suffice it to say the Dodd plan would require the government to take an equity stake in exchange for asset (bad morgatage papers) purchases.

Krugman has a quick note promising more and challenging the Treasury Dept. to "explain why this isn't a much, much better way to do the rescue."

Ezra Klein calls it an encouraging development and looks into possible CEO pay limits.

Bloomberg and the Wall Street Journal have early takes.