January 3, 2009

The US Treasury Department has given itself free rein in deciding the rescues of companies in the finance and auto sectors, according to two Treasury statements published this week.The Treasury on Friday released guidelines for its Targeted Investment Program (TIP), part of emergency legislation enacted in early October to ease a credit crunch from the worst global financial meltdown since the Great Depression.

In the statement, the Treasury outlined the principles of the program under which it rescued ailing banking giant Citigroup on November 23.Under TIP, the Treasury said it would determine the eligibility of participants and the allocation of resources "on a case-by-case basis."