Senate Democrats stepped out of the Treasury Department's shadow today, unveiling a variation on the $700 billion Wall Street bailout plan that would make the government an investor, rather than a lender, and limit the pay of corporate executives managing the troubled banking companies seeking assistance from Uncle Sam.

The new draft bill stipulates that the Treasury Department must receive "contingent shares in the financial institution from which such assets are to be purchased equal in value to the purchase price of the assets to be purchased" prior to committing any funding to fledgling investment firms. In plain English, this turns the government's money into an investment rather than a low-interest loan (a.k.a hand out).

The move, should the investment houses make a successful comeback, grants the government the ability to sell back the shares of these firms they own to private and institutional investors for a profit. Let's here it for a little capitalism amid all this socialism!

Also included in the bill is language that requires an oversight board to manage the Treasury Department's own oversight powers. This board and portions of the plan are similar to those proposed by Senator John McCain, and would include the chairmen of the Federal Reserve, Federal Deposit Insurance Corp and Securities and Exchange Commission.

Interestingly, the Senate Banking Committee did not propose membership on this oversight board - a move that leaves overseeing the Treasury's bailout handling up to other Presidential appointees.

The draft bill was released today by the office of Senate Banking Committee Chairman Chris Dodd (D-CT) and is scheduled for debate Wednesday, during a House hearing entitled "The Future of Financial Services: Exploring Solutions for the Market Crisis."

In their rush to get legislation out the door, Congress appears to have forgotten to invite any non-government economic experts to the hearing. Amidst the chaos and unprecedented spending action, we should be listening to every corner of the economy possible before committing one penny towards another rescue.

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