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Written by Westmiller
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Monday, 29 September 2008 01:01 |
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For those who haven't bothered to review the 'Pelosi Compromise' on the bailout, don't waste your time ... it is exactly the same as Paulson's original, soaked in meaningless platitudes.
Pelosi 'Discussion Draft'
http://graphics8.nytimes.com/packages/pdf/business/20080928bailout_text.pdf
Paulson retains the ability to nationalize or purchase any 'financial instrument':
TITLE I—TROUBLED ASSETS RELIEF PROGRAM [‘TARP’]
Sec. 100(3)(9)(A) The term ‘‘troubled assets’’ means— ...
(B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability ...
Paulson retains the unlimited power to nationalize (or deputize) any and all financial institutions:
Sec. 101(c) NECESSARY ACTIONS.—The Secretary is authorized to take such actions as the Secretary deems necessary... without limitations ... including:
(3) Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this Act as financial agents of the Federal Government ...
Paulson can buy any assets at any price. Any price, up to and including the original purchase price - no matter the market value of the asset - is defined as "Just Enrichment":
(e) PREVENTING UNJUST ENRICHMENT.—In making purchases under the authority of this Act, the Secretary shall take such steps as may be necessary to prevent unjust enrichment of financial institutions participating in a program established under this section, including by preventing the sale of a troubled asset to the Secretary at a higher price than what the seller paid to purchase the asset.
Paulson is authorized to give a federal guarantee on an *unlimited quantity* of any asset:
(3) EXTENT OF GUARANTEE.—Upon request of a financial institution, the Secretary may guarantee the timely payment of principal of, and interest on, troubled assets in amounts not to exceed 100 percent of such payments.
Then we have the pretense that Paulson may "take into consideration" the "interest of taxpayers", then totally ignore them, topped off with a total disregard (if he pleases) of any increase in the debt:
Sec. 103 In exercising the authorities granted in this Act, the Secretary shall take into consideration—... protecting the interests of taxpayers by maximizing overall returns and minimizing the impact on the national debt;
Now, a "Republican Gem" ... Paulson can do whatever he wants, as long as four other executive Czars *watch him do it*:
SEC. 104. FINANCIAL STABILITY OVERSIGHT BOARD.
(a) ESTABLISHMENT.—There is established the Financial Stability Oversight Board, which shall be responsible for—
(2) making recommendations, as appropriate, to the Secretary regarding use of the authority under this Act ...
MEMBERSHIP: (1) the Chairman of the Board of Governors of the Federal Reserve System;
(2) the Secretary; (3) the Director of the Federal Home Finance Agency;
(4) the Chairman of the Securities Exchange Commission; and (5) the Secretary of Housing and Urban Development.
Love sunset provisions? This is a gem: Paulson's power continues until *everything he wants to do* is completely done. Read "never":
9 (e) SUNSET.—The reporting requirements under this section shall terminate on the later of— (1) the date that the last troubled asset acquired by the Secretary under section 101 has been sold or transferred out of the ownership or control of the Federal Government; or (2) the date of expiration of the last insurance contract issued under section 102.
The original Paulson Plan gave him blanket authority to do anything, without review. The new version gives him explicit authority to ignore any previous laws on federal acquisitions:
SEC. 107. CONTRACTING PROCEDURES.
(a) STREAMLINED PROCESS.—For purposes of this Act, the Secretary may waive specific provisions of the Federal Acquisition Regulation upon a determination that urgent and compelling circumstances make compliance with such provisions contrary to the public interest.
Those are among the first 30 pages of a 110 page document. All that was added to Paulson's 3-1/2 pages were legal jargon, superficial platitudes, and frivolous reports to Congress. |
