The Washington Post reports that the ObamAdmin is luring financial companies into bailout programs with promises of avoiding restrictions imposed by Congress:

The administration believes it can sidestep the rules because, in many cases, it has decided not to provide federal aid directly to financial companies, the sources said. Instead, the government has set up special entities that act as middlemen, channeling the bailout funds to the firms and, via this two-step process, stripping away the requirement that the restrictions be imposed, according to officials.

Although experts are questioning the legality of this strategy, the officials said it gives them wide latitude to determine whether firms should be subject to the congressional restrictions, which would require recipients to turn over ownership stakes to the government, as well as curb executive pay.

Perhaps we could call them “shell accounts.”

Spread the joy:
Share