I am no fan of Chuck Grassley, but I agree with these comments by the ranking Republican on the Senate Finance Committee:

Grassley said today that he has told his staff members to look into the details of a sweeping arrangement in which the Federal Reserve will help guarantee the obligations of Bear Stearns with a $30 billion credit line.

Bear Stearns will be bought by J.P. Morgan Chase at a price considered by some analysts to be far less than its market value. The company has 14,000 employees.

“I want to understand what the downside risk for the taxpayer is and any upside potential,” Grassley said in a statement issued through his Senate office.

He said he also wants to know more about how insiders such as senior executives fare when such deals are made.

“Corporate bigwigs shouldn’t be able to profit from a deal while employees, shareholders and creditors have to carry the burden of a company’s demise,” Grassley said.

Here’s hoping the Democrats who control that Senate committee will make sure a thorough review is conducted.

I am not a regular on any of the economist blogs, but check out bonddad’s diary history for background on the Bear Stearns debacle.