What do the Republicans want?

Under the alternative Republican plan, the government would set up an
expanded insurance system, financed by the banks, that would rescue
individual home mortgages. The government would not have to buy up the
toxic mortgage-backed assets that are weighing down financial
institutions.

Here is the story.  Is this the Jeffrey Ely plan (you heard it here first!)?  Do any of you have more information?  Does the Paulson-Bernanke rejection of this plan count as a very bad signal about the immediate solvency of major banks?