11/10/2008 05:12 am ET | Updated May 25, 2011

Is McCain's Mortgage Plan Illegal?

Folks who are much more savvy on the specifics of the Troubled Asset Relief Program (TARP) wonder whether the government's $700 billion bailout/rescue program expressly prohibits what John McCain now says he wants to do -- and that is to have the government buy distressed mortgages at face value from banks and renegotiate their terms with homeowners.

They point me to Section 101e of the law, which requires the Secretary of the Treasury to "take such steps as may be necessary to prevent unjust enrichment of financial institutions participating in a program established under this section"

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