The Underground Conservative

There is some growing consensus that President Bush’s decision to use TARP — Trouble Asset Recovery Program — funds to bail out the greedy auto workers Big Three automakers may be illegal.

Why? Because TARP funds were only designated to be used for financial institutions, and Chrysler, Ford, GM and the UAW hardly qualify as financial institutions.

The actual legislative language gives the secretary of the Treasury the authority “to purchase and to make and fund commitments to purchase troubled assets from any financial institution.” Financial institution is defined in the law as, “any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company.”

This is a disturbing trend, namely for the president to be able to designate whatever industry he chooses as a “financial institution” and then allocate bailout money to that industry.

Allowing the executive branch to define U.S. automakers – Chrysler, Ford and General Motors – as financial institutions greatly expands the meaning of TARP, said James Gattuso, a regulatory expert at the conservative Heritage Foundation.

“Frankly, this makes the TARP a personal slush fund for the president,” Gattusso told CNSNews.com. “There are no limits left. The only limit is to run out of money.”

“I was very surprised. It looks like the administration didn’t even try to do an end run legally,” Gattuso continued. “They are just blatantly going to ignore the statute. The question is who would have legal standing to challenge that.”

What limit? They’ll just print some more to throw at whatever they choose.

Here’s what Andrew Grossman at the Heritage Foundation had to say about the illegal use of TARP funds.

El Presidente Bush is getting some opposition in Congress.

Sen. James Inhofe (R-Okla.) said the administration was “changing course regarding the implementation of the massive bailout without any input from Congress.”

“I also opposed the $700 billion bailout because I knew that more than just the financial industry would soon be lining up to ask for government assistance,” Inhofe said in a statement.

“Now, as the Bush administration has waffled and changed course again on implementation of the massive bailout, many of my colleagues who initially voted for the $700 billion bailout have been expressing regret over their decision to hand over such a massive blank check with little oversight to the administration,” Inhofe added.

Who’s next to line up for bailout money? How about failing newspapers?

Bush can’t leave office soon enough for my tastes. Problem is, having the Oval Office vacant for at least four years isn’t any more reassuring.