Sept. 28 (Bloomberg) — Treasury Secretary Henry Paulson will have broad authority to hire financial managers quickly to help manage a $700 billion asset-purchase plan, according to the draft legislation under consideration.
The bill would allow the Treasury chief to waive federal acquisition procedures “where compelling circumstances make compliance contrary to the public interest,” according to a summary of the draft law. The Treasury would have to notify Congress of such waivers within seven days, and also ensure procedures are in place to reach out to minorities.
If the plan is enacted, the Treasury likely will need a lot of Wall Street expertise to manage the assets it acquires, said Tim Ryan, head of the Securities Industry and Financial Markets Association. Ryan also is former director of the Office of Thrift Supervision, which oversaw the Resolution Trust Corp., the agency that liquidated failed thrifts after the savings-and-loan crisis of the 1980s.
Paulson has already recruited from Wall Street to help manage the current financial crisis, the worst since the Great Depression. He hired Morgan Stanley on a $95,000 contract awarded under emergency procedures to help assess options for Fannie Mae and Freddie Mac, the mortgage companies that ultimately ended up in government conservatorship.
Paulson also last week hired former Goldman Sachs Group Inc. colleague Edward C. Forst, now executive vice president at Harvard University, on a $5,000 contract to help with the plan.
Corporate Statism is an approach to state organization, the likes of which Othmar Spann, Benito Mussolini and others are credited with developing. Corporate Statism involves the ruling party acting as a mediator between the workers, capitalists and other prominent state interests by institutionally incorporating them into the ruling mechanism.
However, both in academia and practice, Corporate Statism (or Corporatism as it is also sometimes known) has fallen out of favour.