WTP Pushes Further Into Bailout Legal Challenge

October 4, 2008

AIG Has Already Consumed $61B of $85B Government Loan

Early this morning, WTP 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. Full Story.

Click here for: Supplemental Memorandum
NY Times article: AIG Uses $61B of $81B
Schulz Declaration #2
Full EESA Bill as Passed Oct. 3 2008 (H.R. 1424)