Section 101(a) of the bill that authorized TARP provides as follows: (a) AUTHORITY.âThe Secretary is authorized to establish the Troubled Asset Relief Program (or ââTARPââ) to purchase, and to make and fund commitments to purchase, troubled assets from any financial institution, on such terms and conditions as are determined by the Secretary, and in accordance with this Act and the policies and procedures developed and published by the Secretary. "Financial Institution" is defined as: (5) FINANCIAL INSTITUTION.âThe term ââfinancial institutionââ means any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company, established and regulated under the laws of the United States or any State, territory, or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands, and having significant operations in the United States, but excluding any central bank of, or institution owned by, a foreign government. Auto makers are not âfinancial institutionsâ! The Treasury is not legally permitted to use TARP funds for an automaker bailout. Donât be fooled by todayâs headlines. People will figure this out throughout the day.
Doesn't matter. The Senate isn't really against the bailout, they just don't want to be held responsible for it. They are secretly glad the Treasury is taking care of the problem for them and they can still hold their heads up high when facing their constituents, who are very much against the auto bailout. The fact that it is illegal is irrelevant. No one is going to call out the Treasury on it anyway.
Nice Find. There goes the TARP arguement! Ha. Question turns into when do the dems/repub's agree on a proposed bailout? Even more importantly, how much carnage will ensue before then?
Tell that to GMAC. P.S. Do you really think that the Bush Administration wants to go down with the legacy of allowing GM, Ford, and Chrysler to go BK, laying off a couple of million of workers just before Christmas? Think again.
You poor, poor deluded people. You've fallen into the trap of believing that the world is a just place. They'll just ignore it and do it anyway because it's a national emergency.
They do whatever they fuck they want haven't you noticed? If you own an ounce of gold you will be the richest man in 100 miles in 5 years.
If they can do whatever they want, then why did Goldman, Morgan and AMEX have to qualify as Bank Holding Companies before they could receive TARP funds? How will GM qualify as a Bank Holding Company? Also, if they can do anything, they why is Treasury saying that they are "looking at" whether they can do something? Why don't they just come out and say that they are going to do it? You gotta read between the babble speak of the government. Over the weekend they will figure out that it cannot be done and the headlines will be all red on Monday.