Saturday, April 4, 2009

Big One from the Washington Post: Obama Administration Plans to Devise Scheme to Avoid Company Restrictions on Bailout Funds

This one is intriguing:

The Obama administration is engineering its new bailout initiatives in a way that it believes will allow firms benefiting from the programs to avoid restrictions imposed by Congress, including limits on lavish executive pay, according to government officials.

Administration officials have concluded that this approach is vital for persuading firms to participate in programs funded by the $700 billion financial rescue package.

The administration believes it can sidestep the rules because, in many cases, it has decided not to provide federal aid directly to financial companies, the sources said. Instead, the government has set up special entities that act as middlemen, channeling the bailout funds to the firms and, via this two-step process, stripping away the requirement that the restrictions be imposed, according to officials.
Perhaps Obama believes that "if" doling out trillions to the banks gets the economy (artificially) working again that people will forget that he is doing something that goes against his promises concerning transparency, accountability, and, ahem, change.

Source: Washington Post


Anonymous said...

OT: This is just too funny. Everyone must watch the video and read The Guardian translation.

Roy Lofquist said...


Betwixt Holder overriding the OLC, the appointment of czars and panels (Senator Byrd sent him a letter about the matter) and this explicit end run to circumvent the letter of the law I am getting very nervous.


Ryan said...

It'll be interesting to see what he does. Early in his administration Obama seems to be motivated to do the popular thing. Or I should say, he wants to do things to keep his approval ratings high. We will see.

Thanks for sharing :)


Real Time Analytics