by D. Cupples | Senators Max Baucus (D-MT) and Charles Grassley (R-IA) are wondering about the details of the proposed, $30 billion Bear Stearns bailout. The consequences of the government's not intervening would likely take a nasty toll on our already-troubled economy, but it's nice to know that someone wants to guard the taxpayers' money pot -- especially Sen. Grassley, who investigated the FDA with a pit bull's tenacity. The Hill reports:
"In a joint letter, [Senate Finance] committee Chairman Max Baucus (D-Mont.) and ranking Republican Chuck Grassley (R-Iowa) asked the key players in the deal for information about the negotiations and the final agreement."
"Specifically, the senators want a 'memorandum on the transaction detailing all steps taken to date and steps that remain to be taken,' a list of all of the parties and their negotiators involved, and 'copies of all documents that have been or that the parties intend to file with the U.S. Securities and Exchange Commission or any other regulatory body and any term sheets that relate to the transaction.”
"The letter was sent to the CEOs of the two companies, as well as to Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson and Timothy F. Geithner, the president and CEO of the Federal Reserve Bank of New York.
“'Americans are being asked to back a brand-new kind of transaction, to the tune of tens of billions of dollars. With jurisdiction over federal debt, it’s the Finance Committee’s responsibility to pin down just how the government decided to front $30 billion in taxpayer dollars for the Bear Stearns deal, and to monitor the changing terms of the sale,' Baucus said. 'Economic times are tight on Main Street as well as on Wall Street, and we have a responsibility to all taxpayers to review the details of this deal.'” (The Hill)