Emergency Economic Stabilization Act of 2008
September 28, 2008
All 106 pages of the bailout legislation are available here. (UPDATE: That site crashed. Try this link.)
The legislation gives almost total control to Henry M. Paulson. Look, for example, at this conflicts-of-interest provision:
(a) STANDARDS REQUIRED.— The Secretary shall issue regulations or guidelines necessary to address and manage or to prohibit conflicts of interest that may arise in connection with the administration and execution of the authorities provided under this Act, including—
(1) conflicts arising in the selection or hiring of 18 contractors or advisors, including asset managers;
(2) the purchase of troubled assets;
(3) the management of the troubled assets held;
(4) post-employment restrictions on employees; and
(5) any other potential conflict of interest, as the Secretary deems necessary or appropriate in the public interest.
Talk about foxes guarding the hen house! Paulson gets all of the money. He also gets to decide which of his investment-banker cronies to hire.
Shouldn't an outside agency determine what a conflict of interest is? How is Paulson best suited to determine whether and to what extent he and his fat-cat Wall Street friends have a conflict of interest?
This bill is bad news for America. It's crony capitalism at its worst. Paulson's sole goal under this legislation is to make his rich friends richer.
UPDATE: More posts here.