Quote of the Day: ‘Non-reviewable and Committed to Agency Discretion’

Looks like the paragraph below, taken from Treasury Secretary Henry Paulson’s bailout plan, is starting to gain some attention in the blogosphere and on at least one network television news program. “NBC Nightly News” noted it today, word for word:

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Like I said earlier, Congress and the press need to give this plan a good hard look.

You can see the latest draft of the plan here.

Meanwhile, here’s some thought from the latest edition of the Economist, which went to press just before Friday’s announcement of the Paulson bailout. Whispers of a Resolution Trust Corporation-like bailout were making the rounds, but the magazine cites a study that shows such an approach, when applied in other financial crises, weren’t often effective. A more comprehensive solution is necessary:

The evidence from these attempts is sobering for proponents of an RTC II. Some institutions worked well. In the early 1990s, for instance, Sweden successfully set up an asset-management company to take over and sell the bad loans from its biggest banks. But, in general, the paper argues, such government-owned asset-management firms are ineffective—often because politicians try to push them around.

… America’s mess, even if it has already led to the demise of famous Wall Street firms, is far from finished. That is why the international lessons are worth taking seriously. Resolving a financial mess is cheaper, quicker and less painful if governments take a rounded approach. For the moment, the bail-out tacticians are in overdrive. But the strategists’ moment is approaching.

Also: This plan and the RTC? Some crucial differences.


Hill Struggles to Find Bailout Consensus [Politico]

Volatility Sweeps Financial Markets [AP via ArkansasBusiness.com]

Uncertainty Over Bailout Pushes Down Markets [New York Times]

Europe and Japan Balk at U.S. Plan [New York Times]

Most Americans Agree: Economy Is Getting Worse [The Lede]


4 Responses

  1. Wow, kinda scary, aye?!!

    I just get this gut feeling we are being hoodwinked, tricked, fooled, into economic slavery.

  2. […] about the original plan’s absence of any oversight or review (you can read a crucial clause here). Paulson said he was asked to draft a quick, straightfoward plan that could be approved as quickly […]

  3. does anyone know the text of the “revised” bill? it hasn’t gotten much coverage without editorialization, rather than direct language

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: