The Bailout and Contract Attorney Jobs … More News

Our contacts at Treasury indicated that the “staff up” has been on hold, although the FDIC and OTS are still staffing up because of other related regulatory events.

For those of you following the media reports, the Fed and the Treasury Department may abandon the announced details of the bailout plan.  Paulson indicated this week that he was considering direct bank investment which would be much simpler and could be much more effective.  The bailout
legislation does give Treasury that option.

The analysis: if the bailout went through the banks get cash — $700 billion or more — but their net worth will rise only to the extent the government overpays for the assets. Pricing those assets will be anything but easy, and the expectation of the government program has further frozen those markets. No one wants to sell until they can find out what the government will offer.

The alternative is to go in the direction Britain went this week.  The government could use the $700 billion, or at least a large part of it, to buy preferred stock in banks.

Posse List members should make contact with CACI, one of the largest agencies that staff temporary Federal government positions.  They have a number of contracts with Treasury, DOJ, SEC, etc., etc. for litigation support.  Based on our chats with CACI personnel, we think they will get a substantial portion of the business.  CACI also goes to regular contract attorney agencies for contract attorney support for projects just as the law firms do.

CACI contact:

CACI International Inc
1100 North Glebe Road
Arlington, VA 22201
Phone: 703-841-7800
Fax 703-841-7882
www.caci.com