Maybe I am reading too much into this development, but the fact that Team Obama is planning to announce some TARP restrictions prior to revealing how the money will be doled out is really odd.
I welcome other views, but I can come up with only three theories:
1. The Administration is waking up to how unhappy the public is, and is parsing out the (supposed) pro-taxpayer measures first to appease voters
2. The Administration is worried that the stimulus bill could become hostage to the TARP, and is trying to be responsive to Congressional concerns
3. The whole process is dragging on and the Administration wants to be able to announce something this week so as to keep the markets from getting anxious that the Obama “fix the economy” initiatives aren’t getting bogged down (the “bad bank”idea may have hit a snag over pricing)
None of them seem a sufficient explanation for this plan. Any reader ideas or G2?
The Obama administration is expected to first unveil rules for banks receiving U.S. government help, including clarifications on lending and restrictions on executive compensation, a source with knowledge of the government’s thinking said on Sunday.
Those rules are expected to be announced as early as this week and the administration’s plan to bolster the country’s banking industry is expected about a week later, the source said.