No matter what the problem there's always a solution that is simple, direct, and understandable.

And wrong.

Paulson's bailout proposal meets all 4 criteria.

Neither he, nor Bernanke  nor anyone can be entrusted with the unilateral authority he has requested.

Neither, I'm afraid , can the Bail Out be controlled by embodying in legislation Dean's  or Brad's suggested principles.

Take the requirement that any participating firm
must reduce its executive compensation. Now imagine a reverse auction in which Bank Flavius's proposal is a $billion better than its nearest competitor. But Flavius refuses to cut  $30 million  from its President compensation.
Should the Bail Out Administrator (hereafter- the Bailer) take the inferior offer?
 
The Bailer has to have the flexibility to make the best deal on behalf of the country after cosidering the trade off between  pure economics and the guidance  Congress has provided...While Congress must tell the Bailer  what -besides rescuing the financial system -it intends to try to achieve from this enormous expenditure it can't do so in such a way  that the Bailer hands are completely  tied.. Nor so vaguely  that he simply  does what happens to be most aligned with the personal bias of this former Nixon assistant , most recently  engaged in profiting from the bubble creating  this crisis. Without making any effort ,like say Buffett and Soros ,to warn the country of the coming disaster.. 

We can't assume either the Bailer's  complete honesty or objectivity.There are innumerable instances (Wendy Gramm comes to mind) of Commission Chairs  misusing their postions. It's irrelevant whether  for personal gain or to promote an end in line with their personal philosophy-which can actually be the more dangerous outcome.

What is required is , first,  guide lines established by Congress but ones that are indicative rather than binding. Then. agreement that the Bailer incorporates a check and balance. Congress must appoint a representative who fully shares control with Paulson .Or whoever replaces him if he refuses to accept this requirement.