Thursday, May 14, 2009

Paulson DID Force the Banks Into TARP

Some LeftOWackies insisted that 'nobody forced the banks to take TARP money.'

They were (as usual) wrong.

Former Treasury Secretary Henry Paulson said nine U.S. banks would have to accept $125 billion in government investments or be forced to by regulators, according to a memo prepared for a meeting with the lenders’ chief executive officers in October.

“If a capital infusion is not appealing, you should be aware that your regulator will require it in any circumstance,” the one-page
list of talking points said. “We don’t believe it is tenable to opt out because doing so would leave you vulnerable and exposed.”

Yes, at the time (October '08) I thought that purchasing bad loans would be helpful. And yes, it was the Bush Administration.

But Paulson re-directed the funds to 'capital purchases,' unilaterally. His bad, not mine. Bush/Paulson laid the groundwork for Obama's ominous GM/Chrysler takeovers, and for his 'compensation' regime...something for which Bush should be ashamed.

1 comment:

Anonymous said...

Hence the reason millions of us were melting down the e-mail servers and phone lines to the Senate and House in October.

We all know they ignored us. Anyone who ignored their constituents should be fired in 2010. Its unfortunate we can't do it sooner.