Fox News discusses a Department of Justice slush fund with CEI’s Center for Class Action Fairness founder Ted Frank.
“The underlying problem with the slush funds is we don’t know exactly where the money is going,” Ted Frank, director of The Competitive Enterprise Institute Center for Class Action Fairness, told Fox News. “Using enforcement authority to go after corporate defendants, DOJ bureaucrats are taking billions away from taxpayers to fund their pet projects overriding congressional preferences.”
Frank said the money should go to the Treasury Department and the process subverts the legislative branch’s essential spending power. The Justice Department has argued that money is allowed to bypass Treasury because the banks’ donations to the groups are voluntary.
Both the Government Accountability Office and Congressional Research Service have concluded that the settlement agreements do not violate Congress’ power of the purse. But others disagree.
“This is real abuse of power,” adds Franks.
Read the full article at Fox News.