Friday, December 19, 2008
Randy Picker has a new post on the legality of the auto
bailout under TARP. I continue to
disagree with his argument.
The statute says that the recipient of funds must be a financial
institution, which is defined as an institution, including but not limited to,
a list of classic financial institutions such as banks and insurance companies.
Randy’s argument comes down to this: we must understand the statute simply by focusing on the word “institution.” If that includes an auto company, then they are covered. I just think this is mistaken. One must read a statute as a whole, and all the more so, one must read a provision as a whole. A provision that limits funds to financial institutions, defined as institutions including but not limited to a list of classic financial institution should not be read the same as a statute that merely said funds are limited to institutions.