Wasn't the $700B bailout supposed to be approved only for financial institutions?

Not for automakers?

Where to find the full bill passed?

 

Some school district in Ohio may get 100m in TARP funds.

 

There are so many weasel clauses in the final bill it's almost the same as Paulson's original 3 page "give me everything and don't ask any questions" proposal.

I don't recall the paragraph numbers, but it goes something like:

1. Financial institutions

2. Or anything thing else that the Secretary decides.

If I have another cup of coffee I might try to go look it up.

 

Copy-pasting from another thread on ET:

Section 101(a) of the bill provides:

(a) AUTHORITY.—The Secretary is authorized to establish the Troubled Asset Relief Program (or ‘‘TARP’’) 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.—The term ‘‘financial institution’’ 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.

"(9) TROUBLED ASSETS.—The term ‘‘troubled assets’’ means— (A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability;

and (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, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress."

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I think the "financial institution" definition was crafted so that it covers ANY institution doing business in the US, while giving the impression that it is restricted to the financials. This is how I read it:

The term ‘‘financial institution’’ means any institution, including [irrelevant examples], established and regulated in USA [etc], but excluding any central bank of, or institution owned by, a foreign government.

The examples are irrelevant because there is no language at all suggesting the institution should be related to, or similar to those examples. Technically, the wording only implies that those institutions may not be excluded from this definition. Practically, they were spelled out to create the impression that this is what the definition is all about.

So all that's left is:
- doing business & regulated in USA
- not owned by a foreign government
- must not exclude [true] financials

 

Does it matter. At least they did you the honor of going through the parlimentary games to lull the masseses into making this look legitimate.