Here’s something to ‘look forward to:’ “It was only last April that Bank of America Corp. was making fools out of the doomsayers who had called for its nationalization a year earlier. Taxpayers had gotten their bailout cash back. ….Now the bank may be on the verge of trouble again. Its stock has fallen 41 percent since April 15. Mortgage-bond investors are demanding untold billions of dollars in refunds. The foreclosure fiasco is metastasizing. A member of the Troubled Asset Relief Program’s oversight panel, AFL-CIO attorney Damon Silvers, openly worried at a hearing last week about the risk that Bank of America might need another bailout. A few more months like the last one, and we may be wishing Bank of America had never returned its $45 billion of TARP money.”
That happy thought comes from none other than Bloomberg’s Jonathan Weill (here).
That happy thought comes from none other than Bloomberg’s Jonathan Weill (here).
President Obama is on record of saying the new Financial Reform Bill would mean “no more taxpayer-funded bailouts, period. ” Here. Geithner likewise is on record (here) , “Crucially, if a major firm does mismanage itself into failure, the Senate bill gives the government the authority to wind down the firm with no exposure to the taxpayer. No more bailouts.” Conservatives railed against the Financial Reform Bill maintaining that it simply codified and institutionalized too Big To Fail and Federal Government Bailouts. And now with Bank of America facing formidable challenges just months after its contrived and highly publicized return of TARP funds, one would one expect he Administration to avoid the appearance of coddling big Financial Institutions, firms the President claims are so abhorrent?
Will the Administration live up to its promise to the taxpayer of no more public bailouts for major financial firms, or will he simply pass along another targeted stimulus bailing out Bank of America and Ken Lewis once again? One suggests holding onto your wallet!!
Pete the Banker
Pete the Banker
Tell ’em where you saw it. Http://www.victoriataft.com
