Its funny...the gov't took the Buffet contract, that was intended to be between GS and Buffet and used it as the template. They changed very little. Now Buffet is a private investor, a governmental investor would require vastly different terms/conditions/reps/warranties etc. However, given the speed the gov't moved at to sign up banks, they figured they'd just use best the best available document and not create one themselves that contained the appropriate conditions.
There really is no conspiracy here, just using an inappropriate document to govern the transaction.