Why Redact Bailout Details?

21Oct08

From Techdirt:

The folks over at Planet Money note that the first contract awarded under the bailout, with Bank of New York Mellon Corp. just so happens to have the compensation details to Bank of New York Mellon redacted. If anyone is going to trust the government in handling the $700 billion, how much it spends and how it compensates the various banks that take part in the process clearly need to be open. Otherwise this is a huge opportunity for cronyism and corruption. To start out by blacking out the compensation details is quite troubling, and it doesn’t exactly bode well for how transparent the rest of this process is going to be.

Anyone know the economic justification for redacting the specific compensation details? Something to do with stabilizing the markets if there’s news it wouldn’t like?

I’m a big fan of transparency, and I can’t think of the reason this would be necessary.

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One Response to “Why Redact Bailout Details?”


  1. 1 Bailout » Blog Archive » Why Redact Bailout Details?

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