Wilbur Ross' $1 Billion Bailout Plan
Wilbur Ross is concerned about "wacky" bailout plan provisions. And if the House of Representatives votes down the emergency economic bill, the billionaire investor has an alternative plan — that he'd stake with his own funds.
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Ross told CNBC that passing the Paulson Plan is a painful necessity.
"But it should be renamed the 'Lobbyist Reward Bill,'" he joked. The chairman and CEO of WL Ross & Company pointed to such "wacky" provisions as:
- repealing a 39 cent excise tax on children's wooden arrows
- reducing tarriffs on importing rum from Puerto Rico
"I suppose people whose houses are being foreclosed can drink rum and watch their kids shoot bow-and-arrows," he joked grimly.
"If Congress has any doubts why the American people have lost their confidence in them, this sort of nonsense is a very good reason."
The mega-investor said he'd prefer some of the $700 billion be applied to mortgages, "but there's no linkage" being enforced: "There's no guarantee this will help the mortgage market."
Ross then offered his own ideas for a rescue plan, which could be enacted if the House fails to approve the bill in Friday's vote. He said his funds would stake as much as $1 billion in his alternative plan. (Watch Ross Interview video for details of his plan.)
CNBC's Companies in the News:
- General Electric
- Playboy Enterprises
- Lehman Bros.