with each new revelation of what Paulson, Bernanke, BushCo is doing. Using a crisis to salvage their tax plans which would not have passed legislatively, to cement their power by keeping as much of the shrinking pie as possible, and empoverishing more and more of the Not Have as Much class.

More morsels from the WaPo bank tax article:

The story of the obscure provision underscores what critics in Congress, academia and the legal profession warn are the dangers of the broad authority being exercised by Treasury Secretary Henry M. Paulson Jr. in addressing the financial crisis. Lawmakers are now looking at whether the new notice was introduced to benefit specific banks, as well as whether it inappropriately accelerated bank takeovers.
...
Andrew C. DeSouza, a Treasury spokesman, said the administration had the legal authority to issue the notice as part of its power to interpret the tax code and provide legal guidance to companies. He described the Sept. 30 notice, which allows some banks to keep more money by lowering their taxes, as a way to help financial institutions during a time of economic crisis. "This is part of our overall effort to provide relief," he said.
...
Several other tax lawyers, all of whom represent banks, said the change was legal. Like DeSouza, they said the legal authority came from Section 382 itself, which says the secretary can write regulations to "carry out the purposes of this section."
...
During the current Bush administration, senior officials considered ways to implement some version of the policy. A Treasury paper in December 2007 -- issued under the names of Eric Solomon, the top tax policy official in the department, and his deputy, Robert Carroll -- criticized limits on the use of losses and suggested that they be relaxed. A logical extension of that argument would be an overhaul of 382, according to Carroll, who left his position as deputy assistant secretary in the Treasury's office of tax policy earlier this year.
...
No one in the Treasury informed the tax-writing committees of Congress about this move, which could reduce revenue by tens of billions of dollars. Legislators learned about the notice only days later.

DeSouza, the Treasury spokesman, said Congress is not normally consulted about administrative guidance.
...
But lawmakers worried about discussing their concerns publicly. The staff of Sen. Max Baucus (D-Mont.), chairman of the Finance Committee, had asked that the entire conference call be kept secret, according to a person with knowledge of the call.

"We're all nervous about saying that this was illegal because of our fears about the marketplace," said one congressional aide, who like others spoke on condition of anonymity because of the sensitivity of the matter. "To the extent we want to try to publicly stop this, we're going to be gumming up some important deals."

Grassley and Sen. Charles E. Schumer (D-N.Y.) have publicly expressed concerns about the notice but have so far avoided saying that it is illegal. "Congress wants to help," Grassley said. "We also have a responsibility to make sure power isn't abused and that the sensibilities of Main Street aren't left in the dust as Treasury works to inject remedies into the financial system."

Almost every line of this article is about something outrageous.

Are we having fun yet?

Otherwise, they wouldn't have to be lying about it.

Harry, Nancy, Obama: Nice work!

"First they ignore you, then they ridicule you, then they fight you, then you win." -- Mahatma Gandhi

"... Several times, Mr. Kashkari addressed the issue of banks using government money not to make loans, but to acquire weaker competitors. Despite protests from Congress that the money was not being used as the government had intended, Mr. Kashkari defended the banks’ actions, to an extent. And he said that recent changes to the tax code that facilitated bank mergers were for the better. ..." -- http://dealbook.blogs.nytimes.com/2008/1...

I will bet you all the money they're stealing from us that Obama keeps him on.

"no, we don't need to be there as you hand out all this cash which will prevent me from doing things. nosiree"

sh*t--

Unbelievable Words From A.I.G. --

"Why do people insist on saying things that are obviously untrue?

Edward M. Liddy, the chief executive of AIG, says the latest bailout is just a normal transaction.

“It is not exactly a bailout,” he said in a conference call this morning.

“The terms of the relation are commercial in nature,” he said, adding that everything was being done at “market interest rates.”

Does he want us to believe that there was anyone in the private sector that would have financed A.I.G. on these terms? Does he really think we will believe there is anyone in the private sector who would have financed this company on any terms?

It is sad to see that the plan is for A.I.G. to stay in business forever. This is a company that should be wound down. Instead, it appears that the government will remain an investor for years and years, helping one insurance company compete with others that are not government subsidized. ..."
-- http://norris.blogs.nytimes.com/2008/11/...