Bailout structure an issue, economist says

REDLANDS, Calif., Sept. 22 (UPI) -- Structure, not size, is the key problem with the bailout plan U.S. Treasury Secretary Henry Paulson proposed, an economic professor says.

The $700 billion proposal to help bring stability to U.S. financial markets relies buying financial firms and assets with taxpayers' money, but "will not be complemented by an ownership or control structure that reflect this public ownership," said Dorene Isenberg, Economics Department chairwoman at University of Redlands in Redlands, Calif.

"It does not appear that the American people -- the new owners -- will have a say about executive salaries let alone disposal of profits," Isenberg said. "There's not even a plan for new regulations."

As the bailout stands, regulatory rules that allowed the risky behavior that was responsible "for our systemic meltdown" remain in place, she said, with "no plan to tighten them."