That's That: Feds Nix Bailout's Original Mortgage-Related Purpose

The original purpose of the federal bailout pitched to the public and passed by Congress in those heady days of October was to allow the government to buy up distressed mortgage-backed assets, do what they could to help homeowners and investors in trouble, and then eventually sell the securities to reap (it was hoped) a profit for the taxpayers footing the enormous bill.

No more.

Reports are trickling out (CNN here and the Journal here) that the new purpose of the bailout is to provide federal funds to any company in trouble that can prove it deals with consumer credit. That includes credit card companies (American Express wants taxpayer money now), and auto and student financial aid lenders.

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