Congress Presentative Brad Sherman (CA-27th) is strongly speaking out on the latest version of the Emergency Economic Stabilization Act of 2008 (Bail Out Bill) and in particular exposing how foreign banks, investors will get billions and billions of American taxpayer money.
Sherman has outlined the bills flaws (pdf) in a seven page analysis of the legislation (file attached). One absolutely hair raising element of the bill:
Major foreign investors have already been assured that they can benefit from the Bailout. Under the Bill, the Bank of China can sell a portfolio of toxic assets to a U.S.-headquartered investment bank on Monday, and that investment bank can then sell those same assets to the Treasury on Tuesday. The foreign financial press indicates that foreign investors are sure that they will get at least tens of billions of dollars.
The Bill should contain a provision stating that the Treasury can buy only assets proven to be held by an American investor on September 20, 2008. This provision has been rejected by the Administration, the same Administration that has promised foreign investors that they too will be bailed out.
Rep. Brad Sherman House Floor Speech on the Bill upon first passage attempt (09-29-08):
Most of you reading this are probably astounded. Why exactly would our government demand our money and turn around and give it to foreign banks?
Surely this cannot be so!
Turns out to be true. Even Wall Street Investors are dumbfounded. Why is this in the bill using taxpayer money to hand over to foreign banks? The answer is....Lobbyists of course!
That provision, which was not in the original plan but was reportedly inserted in response to lobbying by bankers around the world, gives French, British, Japanese, Chinese, or Swiss banks with subsidiaries in the U.S. the same access to taxpayer dollars to buy their bad loans.
Meanwhile Asia is salivating at payback to the U.S. for shoving the IMF in their face during their own financial crisis.
Seared into Southeast Asia's collective memory is the iconic image of the 1997-98 Asian financial crisis, where International Monetary Fund (IMF) chief Michel Camdessus towered with crossed arms over a bent-down Indonesian President Suharto as he signed a sovereignty-eroding bailout agreement for his distressed economy.