Full EESA Bill as Passed Oct. 3 2008 (H.R. 1424)
Schulz Declaration #2
WTP Pushes Further Into Bailout Legal Challenge
AIG Has Already Consumed $61B of $85B Government Loan
Early this morning, WTP (We The People) Chairman Bob Schulz filed a supplemental Memorandum of Law in support of the Emergency Appeal to the Second Circuit Court of Appeals contesting last week's order of the U.S. District Court in Albany which barred any injunctive relief in WTP's constitutional challenge to the Wall Street bailout. The lower court had (erroneously) ruled that its jurisdiction to impose injunctive relief was not properly invoked.
The supplemental brief brings additional facts before the appellate court including added urgency supported by a report in The New York Times that over just several days, insurance giant and bailout recipient AIG have already expended $61 billion of the $85 billion loan extended to them via the Treasury and Federal Reserve. That loan, made days prior to the passage of the "Emergency Economic Stabilization Act of 2008", i.e., without any congressional authority whatsoever, along with the full EESA, are being challenged on the ground that the acts all lack Constitutional authority.
The bailout bill, which was signed by the President into law last Friday afternoon, (allegedly) provides the authority for the U.S. Government to purchase or insure $700 billion of unspecified (private) assets from unspecified (private) institutions, (including foreign entities), at its sole discretion.
Unlike the draconian language contained in Treasury's original draft which would have completely exempted the Treasury Secretary from all congressional and judicial oversight, the EESA act passed Friday expressly recognizes the jurisdiction of the U.S. Courts and directs them to grant or deny requests for Temporary Restraining Orders within three days of a request seeking to, "remedy a violation of the Constitution."
Today, Monday October 6, marks the third day following WTP's initial appeal of the order to the Second Circuit Court of Appeals in Manhattan. As of this publishing, the Court of Appeals has as yet taken no action on the WTP appeal and the Government has not responded.