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  • Double Secret Probation

    The Obama Administration promised unprecedented transparency in its financial recovery efforts, including a gee-whiz $18 million web site, Recovery.gov.

    The problem is that the Administration seems addicted to secret back-channel orders to the private sector to obey, “or else”.

    Yesterday’s Wall Street Journal reports on a secret “memorandum of understanding” that apparently orders Bank of America to replace a majority of its board of directors (after already replacing former Chairman Ken Lewis). And the Financial Times reports that Citigroup is near a “secret deal” with the FDIC to restructure its operations and board. Citi’s secret deal with FDIC would apparently be in addition to an existing undisclosed agreement with another banking regulator, the Office of the Comptroller of the Currency (OCC). Citi, at least, appears about to fall subject to double secret probation.

    Like Dean Wormer in Animal House, federal regulators appear to prefer cloaking their restructuring orders to the private sector in secret. Maybe Citi needs to have a toga party.

    Posted in Economics [slideshow_deploy]

    8 Responses to Double Secret Probation

    1. Pingback: » Financial News Update - 07/17/09 NoisyRoom.net: Where liberty dwells, there is my country…

    2. Pingback: Shakedown!

    3. FireInsideTheMan, Mi says:

      This clueless Administration is going out of its way to hype up their efforts at open government and transparency when in fact they are using doublespeak and hypocrisy to cover up all of their actions to avoid public debate or scrutiny. As the recent poll numbers suggest, people are getting tired of the professorial lectures about hope and change, waiting for recovery efforts to kick into high gear, and the push for sweeping government overhaul to destroy individual liberty, privacy, justice, etc. in the name of global governance. Impeach him while we still have a chance to turn this sinking ship around!

    4. Christine, Oklahoma says:

      Like I've heard people say,"Never let the right hand know what the LEFT hand is doing". We need to watch what organizations the money is being put into.

      There are sooo many stories of "falsehoods" in this administration. The left has been in TOTAL control now for 6-months and look at what havoc they have REAKED!

    5. Pingback: Pond’rings » How Big are Those Bailouts?

    6. Pingback: Conservative Compendium » Laugh Of The Day

    7. Eric, South Carolina says:

      The last time I checked, the havoc came to a crest in the Summer of 2008, and guess who the President was then? Come on, just shout out the answer when you know!

    8. Eric, South Carolina says:

      I should also mention that these deals by the FDIC and other Federal regulators, including the Federal Reserve, are nothing new. Many times, banking regulators are concerned about consumer confidence – as well they should be. I doubt any of us wants to see a run on a major bank

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