Double Secret Probation

Dave Mason / July 17, 2009

The Obama Administration promised unprecedented transparency in its financial recovery efforts, including a gee-whiz $18 million web site, Recovery.gov.

The problem is that the Administration seems addicted to secret back-channel orders to the private sector to obey, “or else”.

Yesterday’s Wall Street Journal reports on a secret “memorandum of understanding” that apparently orders Bank of America to replace a majority of its board of directors (after already replacing former Chairman Ken Lewis). And the Financial Times reports that Citigroup is near a “secret deal” with the FDIC to restructure its operations and board. Citi’s (more…)