The Washington Post’s Robert O’Harrow reports on one pretty interesting section in the bailout bill: the Treasury Dept. does not have to follow standard govt. contracting rules in outsourcing management of the bailout. Basically the Treasury Dept. will be looking outside the agency for financial consultants to manage the purchase of billions of troubled mortgage assets.

Treasury claims it’s an emergency and they need this flexibility. But as O’Harrow points out some of the culprits in the crisis of the secondary mortgage market could be soon guiding the govt’s bailout. Also, didn’t the govt. fail when it ignored contracting rules for the last national emergencies– Hurricane Katrina and the Iraq War?

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