Re: [Pen-l] Next administration gift to the banks?

[raghu <mraghu01@xxxxxxxxx>]

On Wed, May 27, 2009 at 8:28 AM, Marv Gandall <marvgandall@xxxxxxxxxxxx> wrote:
> Allowing banks to have it both ways would give them added incentive to sell
> assets at low prices, even at a loss, the banks contend. They claim it also
> would free up capital by moving the assets off balance sheets, spurring more
> lending.
>
> "Banks may be more willing to accept a lower initial price if they and their
> shareholders have a meaningful opportunity to share in the upside," Norman
> R. Nelson, general counsel of the Clearing House Association LLC, wrote in a
> letter to the FDIC last month.



Translation: "We will be willing to acknowledge the losses that we
have been hiding in our balance sheet, if taxpayers agree to absorb
most of those losses."

This really takes the cake in sheer chutzpah.
-raghu.


--
"A government that robs Peter to pay Paul can always depend on the
support of Paul."
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