Legal Scholars Question Sweeping Bailout Powers

Law360, New York (September 25, 2008, 12:00 AM EDT) -- Although the $700 billion bailout plan proposed by U.S. Treasury Secretary Henry Paulson called for his management of the nation's financial markets without oversight, experts say the bill is not unconstitutional and that suits could still be brought if Paulson violated the constitutional rights of individuals.

Under Paulson's proposed legislation, Congress and the courts would be barred from reviewing his decisions to stabilize the nation's economy. This broad authority, some have said, violates the Constitution.

“It would allow him to act with utter and absolute impunity...
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