April 24, 2009
The Legacy of the First 100 Days
It will take some time, maybe another six months, but the full legacy of the first 100 days of the new administration will be dribbled out, story by story, local paper by local paper, in reporting on the inside corruption of the awarding of the trillions in federal funds in the various stimulus and bailout packages. The legacy will be in bribery, favoritism, corruption, lobbying, pay to play, and political payback.
Who and Where are the AIG "Trustees"?
The press has finally, finally noted that government appointed "trustees" have control of government stock positions in a variety of finanical institutions. There is now some bewildermen over who they are and what they are doing. The three trustees of 80 percent of the stock of AIG are business insiders who make 100,000 dollars a year, make no public comment, meet once a month and "stay in touch by phone", and who have done nothing, nothing to help this struggling company.
The BofA Deal
The transcript of Paulson threatening the job of CEO Lewis if he does not close the Merrill Lynch deal has re-ignited the fuse on whether, in particular, the government overplayed its hand in forcing the merger and on whether, in general, the government is simply exercising too much power over the financial industry and others. The answer to both questions is affirmative. Private industry leaders need to grow tougher back-bones and stand up to these threats. Private lawyer should investigate whether they can sue government officials for economic torts under the Federal Tort Claims Act.