Here’s something to boggle the mind – Treasury giving financial analysts a private preview of the Paulson deal before the rest of us rubes. What did they do, give them a sell recommendation on the US? That’s what’s wrong in these circles. Everything is done off the record or off-book. Re off-book, check out this post on how Lehman stashed its bad assets off-book in entities it spun off, so they could look good for analysts….

Conference Call (Sept. 28) :

8:54: Okay, someone please please dial in because the hold music sounds so damn familiar but I can’t figure out what it is and it is killing me.

9:00: I’m still on hold

9:02: Yes, Stairway to Heaven! And still holding

9:04 Michael Peace (?) takes the mic “this is very positive…we’ve worked hard with congress…it’ll be good…Neil from the treasury will go over how the warrants works and exec comp”

9:05 Broad discretion for the treasury

9:06 Neil takes the mic
You might’ve heard the headline number: seeking 700 bn. for residential and commercial assets. (yes, we’re aware). “we sought broad authority and flexibility”

– They might use the authority for “other instruments”

– Let us be clear: “targeted at financial system NOT failing institutions, though there are some institutions in that system that are, you know, failing.”
9:08: Any institution that has a “meaningful presence in the US” should be allowed to participate. Congress said they wanted: oversight, tax payer protection. OUR highest priority: “making sure it works”…it needs to attract companies to participate…warrants, exec comp were highly negotiated…we think we have enough flexibility to have a system that works.

Read the rest (and weep) at Naked Capitalism.