The Bailout: Back to Square One
The battle between Wall Street and Main Street over how to rescue our troubled financial system rages on. On Monday, the House rejected a $700 billion bailout plan crafted by the Bush Administration and the leadership of both parties, the Emergency Economic Stabilization Act of 2008.
As champions of transparency and accountability, POGO isn't shedding tears over this development. Any plan that ultimately passes will not be carried out by civil servants alone. Much of the work will be performed by contractors. The plan outlined in the rejected bill would have vested the Treasury Secretary with unprecedented oversight powers, including the power to bypass federal acquisition rules:
The Secretary may waive specific provisions of the Federal Acquisition Regulation upon a determination that urgent and compelling circumstances make compliance with such provisions contrary to the public interest.
This would have enabled the Treasury Secretary to award billions of dollars in sole-source contracts to private asset managers firms and financial consultants, even those with a direct financial interest in the bailout. In addition, the Secretary could waive other FAR provisions that protect taxpayers.
It's encouraging to see news outlets starting to focus on the potential for contracting abuses in the bailout. As POGO Executive Director Danielle Brian explained to Government Executive this week, "The government has not shown much competence in emergency contracting." As two shining examples of this lack of competence, we present 1) Iraq reconstruction and 2) Hurricane Katrina cleanup. On the other hand, the analysts quoted in this Washington Technology article speculate that the bailout will increase pressure on cash-strapped agencies to find ways to reduce contracting risks.
Meanwhile, the Center for Responsive Politics followed the money trail and made an interesting finding regarding the bailout battle. It seems that House members who voted for the bill on Monday have collected about 51 percent more in campaign contributions from the affected industries (finance, insurance and real estate) than those who voted against it. Among Democrats, that discrepancy between bill supporters and opponents is an even more astonishing 88 percent.
-- Neil Gordon
POGO,
It shows one as a comment reply, yet no posting of my reply comment. I am confident that this will be corrected shortly and long with this post an my gartitude and appreciation for posting my reply.
Please note that additionally that on a GAP reply I mention or re-maention that many of the spouses of our US legislatures and I presume so-called Lobbyist and other notables are on the Boards or as Executive Advisors to manyof the Financial Institutions (including, Mutual Funds etc) and Big Business and Big Industry.
Again my request to our US Legilatures that they immediately approve the veto proof HR985 Federal Employee Whistleblower Restoration and Protection Act 2008 and Government and Corporate Whistleblower restoration and protection act to restore our US inalienable rights and as within our US Constitution and Democracy mandates by proper and forthright interpretation of our Laws.
Thank you and all for your time and consideration.
Sincerely,
Axel
Posted on: Oct 01, 2008 at 01:19 PM
Dear Readers, 10/1/2008
Dear US Legislatures.
I am saddened and concerned within the recent events although once again thankful that POGO and Mr. Gordon have provided an Article, which I will read in a few moments that has allowed me to submit a response. Also as important and I would suggest or expect to note that this/these issues are of a notable first and foremost area of highly and significant concerns.
I have recently have posted replies on three seperate recent Article on the GAP, Government Accountability Project, Whistleblower.ORG website, 8 replies, 13 Replies and some of the next 5 replies. I would highly appreciate and suggest that POGO readers and our US Legislatures immediately read these replies and upon the approval of POGO, post your comments and/or replies here. Also I will be accommodative if POGO suggests if POGO myself transfer the relevant or all those replies here at POGO so I may more readily assist and/or accomodate a response or inquiry should there be any questions or concerns.
Vote 'NO' on the bail-out. Vote Yes on HR985, Federal Employee Whistleblower Enhancement, Restoration and Protection Act 2008. I would presume that our US Legislatures who support this bail-out Legislation would receive your NO vote when they return to their home states to seek your vote.
Thank you for your time and consideration.
Sincerely,
Axel
Posted on: Oct 01, 2008 at 12:45 PM