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Geithner's New Bailout Rules: No Political Interference Allowed

Here is a list of Treasury Secretary Tim Geithner's new rules on institutions getting a piece of the remaining $350 billion of the $700 billion government bailout/rescue plan, in response to criticism from lawmakers and others that the bailout is not transparent enough.

Some of broad statements of principle and are probably better-intentioned than practical, such as Treasury's pledge to "ensure that political influence does not interfere" with bailout disbursement. (Good luck, there.)

But others are more specific.

Here they are:

-- Combating lobbyist influence in the bailout process: The Treasury Department will implement safeguards to prevent lobbyist influence over the program, including restricting contacts with lobbyists in connection with applications for, or disbursements of, bailout funds.

-- Keeping politics out of funding decisions: The Treasury Department will ensure that political influence does not interfere with bailout decision-making, using as a model for these protections the limits on political influence over tax matters.

-- Certification to Congress on objective decision making: In reporting to Congress, the Office of Financial Stability (OFS) will certify that each investment decision is based only on investment criteria and the facts of the case.

-- The investment process will be transparent and based on objective criteria:
- Only banks recommended by the primary bank regulator will be eligible for capital investments.
- OFS will publish a detailed description of the investment review process undertaken by the regulators and OFS.
- The Treasury Department will ensure adequate resources exist to process applications as quickly as possible with priority to the date of the application as received by OFS and will formulate procedures to ensure integrity and regularity in the application process.

"American taxpayers deserve to know that their money is spent in the most effective way to stabilize the financial system," Geithner said in a statement. "Today's actions reaffirm our commitment toward that goal."

-- Frank Ahrens
The Ticker is Twittering!

By Frank Ahrens  |  January 27, 2009; 10:55 AM ET
Categories:  The Ticker  | Tags: Geither, bailout  
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Next: New York Fed Names Geithner Successor


Geithner will make a good fall guy. He has already been deemed incompetent or a crook.

It is a complete travesty of Justice for Geithner to have been apointed by the Obama Administration, and confirmed by Congress. Anyone who voted for Geithner is part of the problems in Washington.

New rules by Geithner, who cares. He should be removed as soon as possible. We need principled, business minded leadership, not crooks, theives, or incompetance.

This appointment shows the extreme lack of judgement and character of the Obama Administration.

Posted by: ignoranceisbliss | January 27, 2009 11:23 AM | Report abuse

The people that own the Federal Reserve banks got just who they wanted. Their lackey to continue to shovel money to the banks and to buy toxic assets to get it off their backs on to ours. These banks need to go through structured bankruptcy just like any other industry. Let them shed the toxic assets in bankruptcy and the government can support them on the back end. It is criminal to have the people pay to bail out the bankers and others that were up to their armpits in writing these toxic loans and now do not want to pay for their poor judgement.

This appointment only affirms who is really running this country. They own the Federal Reserve.

Posted by: Bubbette1 | January 27, 2009 12:12 PM | Report abuse

Now we see what kind of crooks we have in Washington and sitting at the post of all these major companies. If you want to stimulate the economy,put people back to work and do it without the American people being ripped off,give each US citizen $25000.00 and watch the economy be stimulated and alot of debt will be paid off. The only way to get the economy going is to give the American people confidence and employment. We have no confidence in the Government or these companies that we are bailing out. The companies we are bailing out are crooks and what do we expect the crooks to do with our bailout money? They've already proven they are crooks so what do we do? We give them more to steal. The $25,000 may seem expensive to you but wait til you see the final tab on this bailout. I think 4 Trillion dollars will be on the low side. Let's stop bailing these companies out and bail us out with our own money. Let's do the right thing for a change. We're the ones being unemployed, not the fat cats in Washington or these rich people running these companies.

Posted by: bchambers1 | January 27, 2009 2:00 PM | Report abuse

Let's stop giving this bailout money to these crooks and give it to the American people. Let's give $25,000 tax free to each US citizen over 18. This may sound more expensive but we haven't seen the total of what these bailouts are going to cost. I personally think the bailouts will top 4 trillion dollars, making the $25000 per person over 18 the cheapest way out. If each person over 18 gets $25000, watch how that stimulates the economy and debt will also be paid down. Let's send this to congress.

Posted by: bchambers1 | January 27, 2009 2:48 PM | Report abuse

Odd that his first action was to hire a millionaire lobbyist as his top aide. Did the WaPo cover that???NO?? I am shocked.

Posted by: Cornell1984 | January 28, 2009 9:58 AM | Report abuse

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