Conyers, Kucinich Express Alarm Regarding the Use of Funds from the $700 Billion Rescue Package
WASHINGTON, D.C. (October 29, 2008) -- House Judiciary Committee Chairman John Conyers, Jr. (D-MI) and Government Oversight Subcommittee Chairman Dennis Kucinich (D-OH) today expressed alarm that the $700 billon from the Troubled Asset Relief Program has apparently not yet been used to make loans to businesses and consumers. Recent media reports suggest the banking industry will not use these funds to facilitate lending, but will instead use them to facilitate mergers.
“It is very troubling to learn that the $700 billion rescue package sold to the American consumer as necessary ensure to continue loans to small businesses and consumers, is apparently being used instead to squeeze smaller banks out of the market,” said Conyers. “I’m concerned about the federal government using these funds to take sides in mergers and to promote consolidation within the financial markets instead of reviving our economy.”
“It seems evident that bailout funds are being used in unintended and objectionable ways,” said Kucinich, a leader in opposition to the bailout. “Nowhere is this more clear than in my district in Ohio, where National City was recently purchased by PNC; a bank that did not receive bailout money was purchased by a bank that did. Federal money should not be used to subsidize consolidation of the banking industry.”
The Judiciary Committee also sent a letter to financial regulators, a copy of which is available HERE.
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I certainly hate to hear
I certainly hate to hear this kind of abuse has already begun. It's no real surprise though. The American people knew that the adminstration could not be trusted. We've been the victims of deceit for almost 8 years now. We tried to tell Congress that the adminstration could not be trusted to do the right thing for America. Congress once again, failed the American People by ignoring the voice of the people! "We the People" spoke loud and clear on this issue, We were ignored. "END OF STORY"!!
Kashkari defends banks' use of bailout funds for acquisitions
From "Congress to Banks: Eat Your Veggies" by Emily Kaiser (Reuters Economics Reporter for the Americas)
blogs.reuters.com/macroscope/2008/10/23/congress-to-banks-eat-your-veggies/
Creating more or larger financial institutions "too large to fail" is the exact opposite of what Joseph Stiglitz and other economists say is necessary to prevent our getting in a similar economic vise in the future. They want the U.S. to use trust-busting laws to break up current mega investment banks, and regulate to prevent formation of any new ones, so that poor judgement or malfeasance of the executives of one institution can't threaten the entire system. (Note Kashkari's glaring omission of the option to aid the small banks individually. Guess they're not big Republican donors.)
Implicit Monopolies.
What needs to be pounded home to fellow Americans is that while Monopolies don't compete, neither do a handful of businesses!
It's often more lucrative to collude, than compete.