Webloggin » CARP – Congressional Asset Ripoff Program

Update: I fricken knew it. I bet this was planned all along. I should have known that when the legislation bloated from 3 pages to 451 pages that this would be another opportunity for the Senate to reward special interests and bog it down with pork.

Q: If the need for the bailout is so dire why is Congress playing politics and business as usual with this bill?

Q2: Did John McCain actually read this crap sandwich?

Last night about 100 pages of the 451 page Troubled Asset Relief Program (TARP) legislation that passed the senate last night. One thing seems clear to me, this is much more than a bill to buy “troubled assets” from banks.

It will be used to purchase bad loans that were given to individuals and families that had no business getting into the loans they entered. In principle this is bad but I understand the point, except that I fear the criteria might be quite selective. Is there an income threshold, will this be done using the same Robin Hood mentality that got us here in the first place? My guess would be yes, and yes.

Mark my words. If this bill passes you will be sitting in front of the television a year or two from now watching politicians decry the fraud that happened under this unprecedented bill. There will be a 60 minutes investigation of some politically connected family that was rescued by the government or worse, drug dealers scamming the system, dealing drugs from a house that is owned wholly by the American taxpayer.

There is a lot of garbage to swallow here. For instance in 116, sec H on page 51 there is the typical oversight provision making sure that contracts are handed out not on a means basis but based on “minority” status.

(H) The efficacy of contracting procedures pursuant to section 107(b), including, as applicable, the efforts of the TARP in evaluating proposals for inclusion and contracting to the maximum extent possible of minorities (as such term is defined in 1204(c) of the Financial Institutions Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C. 1811 note), women, and minority- and women-owned businesses, including ascertaining and reporting the total amount of fees paid and other value delivered by the TARP to all of its agents and representatives, and such amounts paid or delivered to such firms that are minority- and women-owned businesses (as such terms are defined in section21A of the Federal Home Loan Bank Act (12U.S.C. 1441a)).

Speaking of oversight, in the Corrective responses to audit problems the TARP shall, and I quote, “certify to appropriate committees of Congress that no action is necessary or appropriate.”

How about I put that in layman’s terms, if the GOA finds an audit problem the TARP can say, no problem here, now move along.

And this CARP of a bill will be in effect for a long, long time; at least until the last “troubled asset” is sold or the insurance contract expires. I guess that’s good for oversight but in a state that was going to have a temporary tollway system until the roads were paid off I am reminded that this sort of language is bullshit every time I rack up another toll decades after the system was supposed to go away.

How about judicial review? Is the Secretary bound by judicial review if it is found to be acting in a manner that is arbitrary, capricious, an abuse of discretion, or not in accordance with law? Well that depends.There are of course limitations on equitable relief, which I imagine is commonplace in these sort of bills. It would take a lawyer to figure that out. Congress made it up in a week.

In fact it will take an expert with much experience to tell us if this is a good deal or not. This Congress has not exuded any confidence at all so I can’t be sure. I guess only time will tell.