SUCKLING THE GOVERNMENT SUGAR TIT
With the battle cry of “Too Big to Fail!” corporate and industry lobbyists are swarming the Treasury Department, looking to get a bite of that $700 billion pie the government so kindly left on the window sill to cool.
It’s a goddamn free for all - as in free money for all - and the predatory instincts of the well heeled hired guns who make their living grasping the taxpayer by the neck and shaking until the cash pours out of us are on full display.
They call it the “Troubled Asset Relief Program” or TARP and of that $700 billion authorized by Congress, the Treasury Department has handed out about $290 billion of it - and not all of it to who Congress intended it to go to.
One of the problems is that Congress decided to give Secretary Paulson almost unlimited discretion in deciding who should get the goodies. Big mistake. Once word was out on the street that absolutely free money was to be had by anyone “Too Big to Fail,” the wolfpack began to clog the halls of the ancient Treasury building, slinking from office to office, looking for a piece of the action.
Apparently, the only criteria necessary for receiving a diamond studded, 24 carat, mink-lined gift from the taxpayer was the degree of shamelessness on the part of your lobbyist - and their ability to knee walk in supplication to Paulsen’s office:
The Treasury Department is under siege by an army of hired guns for banks, savings and loan associations and insurers — as well as for improbable candidates like a Hispanic business group representing plumbing and home-heating specialists. That last group wants the Treasury to hire its members as contractors to take care of houses that the government may end up owning through buying distressed mortgages.
The lobbying frenzy worries many traditional bankers — the original targets of the rescue program — who fear that it could blur, or even undermine, the government’s effort to stabilize the financial system after its worst crisis since the 1930s.
Among the most rattled are community bankers.
“By the time they get to the community banks, there may not be enough money left,” said Edward L. Yingling, the president of the American Bankers Association. “The marketplace is looking at this so rapidly that those who have the money first may have some advantage.”
Adding to the frenzy is the possibility that the next Congress and White House could change the rules further. President-elect Barack Obama has added his voice by proposing that the struggling automakers get federal aid, which could mean giving them access to the fund — something the Treasury secretary, Henry M. Paulson Jr., has resisted.
Don’t have yours yet? Me neither. What are we doing wrong? Maybe we should talk to the Commissar:
Then there is the National Marine Manufacturers Association, which is asking whether boat financing companies might be eligible for aid to ensure that dealers have access to credit to stock their showrooms with boats — costs have gone up as the credit markets have calcified. Using much the same rationale, the National Automobile Dealers Association is pleading that car dealers get consideration, too.
“Unfortunately, I don’t have a lot of good news for them individually,” said Jeb Mason, who as the Treasury’s liaison to the business community is the first port-of-call for lobbyists. “The government shouldn’t be in the business of picking winners and losers among industries.”
Mr. Mason, 32, a lanky Texan in black cowboy boots who once worked in the White House for Karl Rove, shook his head over the dozens of phone calls and e-mail messages he gets every week. “I was telling a friend, ‘this must have been how the Politburo felt,’ ” he said.
Except the Commies came by their socialism honestly. Here you have a bunch of thieves lining up for it:
The Treasury set a deadline of Friday for institutions to apply for capital investments, which has meant a grueling few weeks for already overworked officials like Mr. Mason.
“Jeb is like the customer service agent at Verizon when the power lines go down,” said Robert S. Nichols, president of the Financial Services Forum, a trade group for big institutions like Citigroup, Fidelity and Allstate Insurance, some of which have received federal money.
Not exactly a customer service agent. They’re more likely to take your money rather than hand it out.
Still can’t get on the gravy train? There’s always Plan B: When in doubt, hire a former candidate for president of the United States to do your schmoozing for you:
Law and lobbying firms that specialize in government contracting fired off dispatches to clients and potential clients explaining opportunities in the new program. Capitalizing on the surge of interest, several large firms, including Patton Boggs; Akin Gump; P & L Gates; Fried, Frank, Harris, Shriver & Jacobson; and Alston & Bird, have set up financial rescue shops.
Alston & Bird, for example, highlights its two biggest stars — former Senator Bob Dole and former Senator Tom Daschle. Mr. Dole “knows Hank Paulson very well” and has been “very helpful” with the financial rescue groups, said David E. Brown, an Alston & Bird partner involved in its effort.
“And of course, Senator Daschle is national co-chair of the Obama campaign,” Mr. Brown added, noting that because Mr. Daschle is not a registered lobbyist, his involvement is limited to “high level advisory and strategic advice.”
In addition to the banks, savings and loans, financial services companies, insurance giants, and any corporation that can redefine itself as being either a crazy uncle or poor cousin of one of the above, there is also Detroit seeking to be rewarded for designing ugly cars that no one wants and that get less gas mileage than the Space Shuttle. It appears that no level of failure, no limit on incompetence and stupidity, will stay the government from handing out cash to the unworthies, the profligates, the dimwitted sots who run American corporations.
And of course, we hear the tocsin sound among Democrats, calling the faithful to class warfare as an effort is still underway to find some means of making the rest of us pay for the stupidity of those who got tangled up in the sub prime mortgage mess.
“Too Big to Fail!” also means “Too Big an Idiot to Fail!”
“I’d like to see them use more of the money in TARP to help homeowners,” said Barney Frank, Democrat of Massachusetts and chairman of the House Financial Services Committee. “I think we’ve given them more authority than they have used.”
To be sure, the program announced on Tuesday by Fannie Mae and Freddie Mac could lead to significantly lower mortgage payments for several hundred thousand people facing foreclosures.
The program would be open to people who are at least three months delinquent on mortgages that are either owned or guaranteed by Fannie Mae or Freddie Mac. The goal would be to reduce the monthly payments on all of those loans — by stretching the term to 40 years, or lowering the interest rate, or even lowering the amount of the loan — so that payments would not be higher than 38 percent of a family’s monthly income.
“Foreclosures hurt families, their neighbors, whole communities and the overall housing market,” said James B. Lockhart, director of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac.
Eureka! Finally, a way to grab some of that bailout money for ourselves. Of course, you have to have a loan through Fannie Mae or Freddie Mac. And you have to not pay your mortgage for a couple of months (How many people who are two months delinquent will simply decide not to pay that third month in order to be eligible for the giveaway?).
But never fear. Help is on the way. And, on behalf of your fellow taxpayers, let me just say that I, for one, don’t mind giving mortgage scofflaws some of my hard earned cash - just as long as you let me spend the night whenever I want and allow me to lay in my hammock in your backyard every once and a while during the summer. I think that’s a fair exchange, don’t you?
By the time all is said and done, I am confident in saying that the government will not make the hard choices necessary to stem the flow of tax dollars to companies who have failed in the market place and now seek to have government reverse that decision and give the risk takers, the gamblers, the deadbeats, and the just plain greedy a second and third chance. Not as long as there are lobbyists who have dollar signs shining in their eyes and the smell of free cash stinking up our Capitol city.
What a spectacle.