Double Secret Probation

Posted July 17th, 2009 at 9.57am in Enterprise and Free Markets.

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.

Author: Dave Mason
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July 17, 2009 » Financial News Update - 07/17/09 NoisyRoom.net: Where liberty dwells, there is my country… writes:

[...] Double Secret Probation [...]

July 17, 2009 Shakedown! writes:

[...] - Double Secret Probation: Yesterday’s Wall Street Journal reports on a secret “memorandum of understanding” that [...]

July 20, 2009 FireInsideTheMan, Michigan writes:

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!

July 20, 2009 Christine, Oklahoma City writes:

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!

July 21, 2009 Pond’rings » How Big are Those Bailouts? writes:

[...] Remember the bailouts? Right—the US Government has put something like $1.5 trillion dollars or more directly into the US economy to keep things floating. First there was TARP, at $700 billion, and then the “stimulus,” at another $700 billion. None of this includes the amount spent in putting a couple of car companies together, bailouts to the States, and just general increases in spending in the budgetary process, including massive new spending on universal health care (that won’t be universal), and the new “green initiatives,” such as “cap and trade.” Then we have all these odd secret agreements between various banks and the current Administration, i… [...]

July 22, 2009 Conservative Compendium » Laugh Of The Day writes:

[...] This post a few days back from Heritage’s Foundry cited more evidence: Yesterday’s Wall Street [...]

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