Wednesday, October 22, 2008
According to CNBC:
A group of Democratic senators asked the U.S. Treasury Department on Wednesday to set guidelines saying that banks receiving government capital injections should use the funds to restore their lending activities to levels prior to the credit crunch.Um, guys . . . you already approved the trillion dollar bailout, without insisting on giving the government any power to force the banks to lend, they aren't lending, and they won't lend until the financial crisis is over (see this).
The senators said in a letter that Treasury officials should also issue guidelines or best practices that specify the type of lending allowed, encourage loan modifications, and provide more oversight of executive compensation.
"Although we are supportive of your efforts to restore stability to the financial system through direct capital injections into financial institutions, we are concerned that if the program is not implemented correctly, its effectiveness will be limited," the letter said.
"This plan will only be effective if these funds are used to increase lending by banks, and it is Treasury's obligation to ensure that," said Schumer, who chairs the Joint Economic Committee. "The last thing these banks should be doing is stuffing this money under the proverbial mattress."
We know that Treasury will not force the banks to loan money, and we can see through your political posturing.
The horse is already out of the barn. In fact, YOU opened the door and helped escort him out. Despite the fact that most Americans didn't want the bailout, and despite the millions of phone calls and letters we sent Congress saying "no".