Federal Government Will Take Bad Assets

From the WSJ:

The federal government is working on a sweeping series of programs that would represent perhaps the biggest intervention in financial markets since the 1930s, embracing the need for a comprehensive approach to the financial crisis after a series of ad hoc rescues.

At the center of the potential plan is a mechanism that would take bad assets off the balance sheets of financial companies, said people familiar with the matter, a device that echoes similar moves taken in past financial crises. The size of the entity could reach hundreds of billions of dollars, one person said.

Paulson has a press conference at 10AM EST that will explain what is going on. Here are my issues on the surface:

1.) "Regulations are toooooooo complicated! Please stop!"

2.) The Federal government stops.

3.) "We made a lot of bad decisions. Please take these assets from us so the financial system doesn't fall apart!"

4.) Define "bad asset".

5.) What's the total amount the federal government is willing to commit?

Here are some conditions:

1.) Executives at any company that sells an asset can only take home 10 times what the lowest paid person in the company takes home.

2.) They have to buy their own health insurance

3.) The company cannot engage in any lobbying for the next 25 years.