Really? Treasury Hires Thacher & Bartlett for Legal Advice for Rescue Package?
Who cares who the Treasury Department hires for advice when it comes to implementing the over $700 billion rescue plan? I know it, the headline is boring, but keep reading. I decided to look into Thacher & Bartlett to understand why the Treasury Department would use taxpayer money to get guidance—I mean is there not able Treasury staff who can implement their own program?
After a couple minutes on Thacher & Bartlett’s webpage I noticed two things that stuck out like a stockbroker in the unemployment lines. 1) The firm brags about the advice they gave Wachovia when they merged with First Union. 2) The firm also brags about the advice they gave in advising Washington Mutual to acquire Dime.
“The Firm also has advised Manulife Corporation with respect to its acquisition of John Hancock Financial Services, advised Wachovia in connection with its merger with First Union and a related hostile bid for Wachovia, advised Washington Mutual in its acquisition of Dime” – Thacher & Bartlett
Wow, there is some great advice (both institutions tanked) that the Treasury better rush to get. Two companies who failed because of taking on bad debt/bets and acquired companies they didn’t have adequate capital for (thanks to the Treasury’s new counsel). Is this the best out there? No. The Treasury’s own press release announcing the hiring of Thacher & Bartlett says,
“Treasury competitively solicited offers from six firms under compelling urgency to quickly establish the Troubled Asset Relief Program. Two firms made offers.”
Really? In the worst financial crisis since the Great Depression our Treasury Department with pockets so full they can’t sit down, seek help from only six firms and took only two offers? Most Main Street folks, including Joe the Plumber, get more bids to have somebody lay a new driveway.
So what was the final contract for? Well, I’m glad you asked—only a meager $300,000. One of the leading lawyers for the firm is Lee A. Meyerson, who coincidently was picked to help JPMorgan acquire Washington Mutual. It seems to me the firm and its lawyers mainly deal with takeover bids. Why does the Treasury Department need advice in this field? After all, the Federal Government regulates such takeovers, where are the masterminds behind this? Lastly, the Government has to pump money into our financial institutions, I understand this. But if takeovers are in their sites, I’m nervous. $
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The best way to avoid a financial crisis is to spend less than earning. This every body knows. But still following every body feel it difficult. Ultimately situations leads to nervousness.
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