Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (181211)	2/2/2009 2:30:34 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

you can't make the $h!t up....hey do you plan on lining up for one of the 'forced' loans? i will, but only if they guarantee when i choose to default, it gets swept under the tarp: Feb. 1 (Bloomberg) -- House Financial Services Committee Chairman Barney Frank said President Barack Obama will require banks receiving government aid to lend more to businesses and consumers, saying the Bush administration “made a mistake” by not setting stricter rules for institutions getting funds from the $700 billion financial-rescue package. “I think you’re going to see the Obama administration, having learned from that, push for much more lending,” Frank said today on ABC’s This Week. “There are going to be some real rules in there.” Frank and other Democrats have faulted the Bush administration for not setting restrictions on banks that got capital injections from the first $350 billion installment of funds Congress released in October. Congress last month released the remaining funds to the Obama administration, which is crafting its own bank-rescue blueprint. “It is a mistake to assume that the Obama administration hasn’t learned from the mistakes of the Bush administration,” Frank of Massachusetts said. “I believe they’re going to do it very differently.” Lawmakers, upset that the bank rescue plan shows few signs of lifting the economy, have been pressing the Obama administration to come up with a plan for overhauling the effort. Working on Plan The president in his weekly radio address yesterday said his administration is working on a plan to unlock credit markets and lower mortgage rates. “Soon my Treasury secretary, Timothy Geithner, will announce a new strategy for reviving our financial system that gets credit flowing to businesses and families,” Obama said. He didn’t provide specifics. “We’ll help lower mortgage costs and extend loans to small businesses so they can create jobs,” Obama said. “We’ll ensure that CEOs are not draining funds that should be advancing our recovery.” Geithner said last week the department is considering a “range of options” with the goal of preserving the private banking system. Under Geithner’s predecessor, Henry Paulson, the Treasury allocated about half of the $700 billion program to inject capital into banks, help automakers, and guarantee assets for Citigroup Inc. and Bank of America Corp. Ownership Stakes In its rescue efforts so far, the Treasury has taken ownership stakes in more than 300 banks as a condition of receiving aid. The government usually receives preferred shares and warrants, which can be converted into common stock and cashed out at the government’s request. The Treasury, under the TARP, has not sought voting rights or control over day-to-day business. Frank said on the ABC program that inadequate government oversight allowed risky behavior that caused the financial crisis. â€œThe complete absence of regulation in the financial area has, I think, been a disaster,â€ Companies outside the banking system were extending themselves “into instruments which they couldn’t back up,” Frank said. “It was even within the banking system, letting people go with things that were off the balance sheet.” Frank said the government has â€œunder-taxed some of the financial manipulation, and I would be for a package that would shift that. news.yahoo.com.