September 24th, 2008
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke have asked the congress to approve a $700BB Bail-out of the banks. They had the gall to want this with no strings attached.
I’m a conservative republican, but that doesn’t mean I agree with the administration lock, stock, and barrel.
Thankfully, Congress is asking good questions and suggesting logical and intelligent modifications to the request.
Some of the key things they have asked to be added:
- No Golden Parachute Packages for executives of banks that sell their Toxic assets to the Fed
- Limits on their overall compensation if they are receiving Federal help
- Having a potential equity stake in the institution, so that the Tax Payers have a chance of not footing the entire bill. In theory, these institutions will return to being profitable. If we are helping them get there, we should receive some of it
- Creating a trust for the profits and proceeds of the eventual sale of the toxic assets to go into. Congress may not touch these funds. They are soley for the benefit of paying off the debt incurred for the bail-out and if money is left, it would be returned to the Tax Payers.
- Allowing judges to re-write the parameters on the Toxic Debt the Fed buys. If possible, give the distressed homeowner some relief.
I encourage you to contact your representative and let them know how you feel. Frankly, I’m not for the bail-out at all, but I believe there is too much momentum for something not to happen.
What are your thoughts?
-- By +Chris Duncan