The Homa Files

Ken’s Take: 

Many banks were forced to take TARP funds even though they didn’t need or want them.  Why?  So that banks that did need the money wouldn’t be stigmatized and to get more money into the economy.

Now, “industry officials have been expressing growing concern about Washington changing TARP terms, as Congress did last month on rules for executive compensation … That creates uncertainty and disincentives for companies in TARP. You have 535 backseat drivers in Congress. ”

“Think about it: If Rick Wagoner can be fired and compact cars can be mandated, why can’t a bank with a vault full of TARP money be told where to lend? And since politics drives this administration, why can’t special loans and terms be offered to favored constituents, favored industries, or even favored regions? Our prosperity has never been based on the political allocation of credit — until now. ”

Unfortunately (for TARP holders), Team Obama is rejecting attempts to repay the loans … and dodge encumbering Congressional control.

I guess backseat driving is way too much fun … especially when it comes with no accountability.

Source article:
http://foxbusiness.proteus.com/content.html?contentId=29318

* * * * *
Want more from the Homa Files?
     Click link =>  The Homa Files Blog

This entry was posted on April 17, 2009 at 7:59 am and is filed under Financial Crisis, Obama Administration. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.