Thoughts, essays, and writings on Liberty. Written by the heirs of Patrick Henry.

“We attack involuntary servitude, not in spite of the fact that it is advantageous to the "masters," but because we are convinced that, in the last analysis, it hurts the interests of all members of human society, including the "masters."”     Ludwig von Mises,    Liberalism

June 1, 2009

Agree Now, Or Your Regulator Will Make You Agree Later

by Brad Warbiany

Interesting notes that Judicial Watch has gotten hold of from Paulson/Bernanke’s offer they can’t refuse back in October. It’s the talking points from the meeting… “Strongarm” would be an understatement:

We plan to announce the program tomorrow–and–that your nine firms will be the initial participants….

This is a combined program (bank liability guarantee and capital purchase). Your firms need to agree to both.

  • We don’t believe it is tenable to opt out because doing so would leave you vulnerable and exposed.
  • If a capital infusion is not appealing, you should be aware that your regulator will require it in any circumstance.

I’m left wondering how it could have possibly been worse, but then I came up with a scenario.

Bush could have given the banks to the UAW. At least he didn’t do that!

Hat Tip: Reason

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3 Comments

  1. Lots of authoritarianism in the bailouts…don’t forget Bank of America being required to “swallow” Merrill even though there was a material adverse change that allowed them to get out of the deal. Also lots of shielding of info about why they bailed out the institutions in the first place.

    Comment by Vern McKinley — June 2, 2009 @ 6:20 am
  2. Very slightly off topic, but what do you make of the 31 year-old with zero worthwhile or practical experience, being put in some sort of authority position (totally in charge?) of the new Gov. Motors?

    I’m thinking that he must simply be a “front” guy who will do exactly what he is told by someone behind the scenes in the Admin, NOT named and whose identity is not shared with the public.

    “Transparency” indeed.

    Comment by southernjames — June 2, 2009 @ 6:43 am
  3. The Red Sox didn’t win a WS for 80+ years until they hired a kid GM. Perhaps Obama’s thinking the rookie will hit a home run.
    Beginner’s luck is where we are at. Why not? Isn’t America just an experiment in self-government? Don’t you love being part of this great unveiling? Isn’t that what makes Liberty so wildly exciting?

    Comment by jerryhorse — June 2, 2009 @ 3:00 pm

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