Treasury to have ability to make Non-U.S. companies eligible under bailout plan

September 21, 2008 by · Leave a Comment
Filed under: Economic News 

Now this just takes the cake, not only does he want absolute power to execute this massive bailout without any legal review. The Treasury wants to allow the U.S. taxpayer dollars to be used to bailout foreign companies as well. Now this is going too far. I am totally against that and foreign countries should take care of their own national interests during this global crisis. I am not saying we should not work together but sending out hard earned tax dollars overseas is totally unacceptable. Here is what the article said “”The Treasury would also have discretion, after discussions with the Fed, to make non-U.S. financial institutions eligible under the program.

News Release:

he Bush administration sought unchecked power from Congress to buy $700 billion in bad mortgage investments from financial companies in what would be an unprecedented government intrusion into the markets.

Through his plan, Treasury Secretary Henry Paulson aims to avert a credit freeze that would bring the financial system and the world’s largest economy to a standstill. The bill would prevent courts from reviewing actions taken under its authority.

“He’s asking for a huge amount of power,” said Nouriel Roubini, an economist at New York University. “He’s saying, `Trust me, I’m going to do it right if you give me absolute control.’ This is not a monarchy.”

As congressional aides and officials scrutinized the proposal, the Treasury late yesterday clarified the types of assets it would purchase. Paulson would have authority to buy home loans, mortgage-backed securities, commercial mortgage- related assets and, after consultation with the Federal Reserve chairman, “other assets, as deemed necessary to effectively stabilize financial markets,” the Treasury said in a statement.

The Treasury would also have discretion, after discussions with the Fed, to make non-U.S. financial institutions eligible under the program.

The plan would raise the ceiling on the national debt and spend as much as the combined annual budgets of the Departments of Defense, Education and Health and Human Services. Paulson is asking for the power to hire asset managers and award contracts to private companies. Most provisions of the proposal expire after two years from the date of enactment.

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