Treasury's Waffling Rattles Confidence

The Treasury Department is hoping that the third time's the charm in developing its plan to stabilize the financial markets. But the haphazard manner in which the program has been structured has left some wondering whether the folks in charge are equipped to handle the crisis.

A brief recap of the Troubled Asset Relief Program's demise: First, Treasury Secretary Henry Paulson suggested buying $700 billion worth of banks' troubled assets. His proposal to Congress was briefly sketched out on three sheets of paper, with few strings attached.

Perhaps unsurprisingly, lawmakers overhauled the plan in divisive sessions. The final draft included a stipulation allowing the government to obtain preferred stock in exchange for cash -- a measure that Paulson adamantly objected to, at first. But once Britain decided to inject capital into its financial system, the U.S. soon followed suit, while hatching a plan to purchase banks' troubled assets with remaining funds. ...