Treasury Bars Lobbyists From TARP II

Not sure how they intend to accomplish this, and the WaPo story suggests they’re not sure either:

Treasury Secretary Timothy F. Geithner issued new guidelines yesterday aimed at eliminating the influence of lobbyists on the $700 billion financial bailout program by restricting their contact with officials who are reviewing applications for money and deciding how to disburse it.

Treasury officials also will seek to limit political influence over the funds, saying they will use similar restrictions that forbid such influence in tax matters as a model. The department’s Office of Financial Stability will be required to certify to Congress that each government investment is based solely on objective criteria. As part of that effort, only banks recommended by their primary regulator will be eligible for capital investments.

Great, so lobbyists won’t have any more influence over TARP II than they will over our tax code. I feel better.

UPDATE 1/28 2 PM PST: Geithner follows this up by announcing an ex-Goldman Sachs lobbyist as his chief of staff. Hat Tip – Cafe Hayek.

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  • Akston

    I just thought of a great way to eliminate lobbyist influence over bailout funds. Stop funding bailouts.

  • http://pith-n-vinegar.blogspot.com/ Quincy

    Akston, that’s the *only* way.