TARP for Automakers - Not Legally Permissible

[Random.Capital]

Quote from U Boat Commander:

Take a look at the list of entities that have received TARP funds and you will see that every one of them is a BHC.

The message doesn't seem to be getting across. Even if, for the sake of argument, the alleged restriction is accepted, there are at least two ways to get TARP money into GM/F by using BHCs as conduits.

This is a complete non-issue - if the Bush administration wants to pump $s into GM/F they can do it at will.

 

[MrDODGE]

The money will be funneled through GMAC to GM once they are made a bank.

They will find a way around their own rules.

 

[krazykarl]

Quote from U Boat Commander:

Really? Well at least I can spell. Douche.

spell-check doesn't always pick the right word. kthxbye

 

[krazykarl]

Quote from Random.Capital:

The message doesn't seem to be getting across. Even if, for the sake of argument, the alleged restriction is accepted, there are at least two ways to get TARP money into GM/F by using BHCs as conduits.

This is a complete non-issue - if the Bush administration wants to pump $s into GM/F they can do it at will.

A first year analyst would realize this immediately. I don't understand why it's so hard for the OP to understand.

 

[scriabinop23]

I hear a rumor a wooden arrow maker is going to chip in for the GM bailout.

 

[AMT4SWA]

Talking about TARP with the word LEGAL is absolutely laughable!!!!!

The TARP is a massive illegal and unconstitutional theft of america!!!

 

[trader_arb]

Quote from krazykarl:

A first year analyst would realize this immediately. I don't understand why it's so hard for the OP to understand.

OP is not an analyst, he's a U boat commander

 

[nicuss]

Quote from U Boat Commander:
"Financial Institution" is defined as:

(5) FINANCIAL INSTITUTION.—The term ‘‘financial institution’’ means any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company, established and regulated under the laws of the United States or any State, territory, or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands, and having significant operations in the United States, but excluding any central bank of, or institution owned by, a foreign government.

This definition was crafted so that it covers ANY institution doing business in the US, while giving the impression that it is restricted to the financials. This is how I read it:

The term ‘‘financial institution’’ means any institution, including [irrelevant examples], established and regulated in USA [etc], but excluding any central bank of, or institution owned by, a foreign government.

The examples are completely irrelevant because there is no language at all suggesting the institution should be related to, or similar to those examples. Technically, the wording only implies that those institutions may not be excluded from this definition. Practically, they were spelled out to create the impression that this is what the definition is all about.

So all that's left is:
- doing business & regulated in USA
- not owned by a foreign government
- must not exclude [true] financials

Not much room for interpretation really.