#1 Sheila C. Bair of the Federal Deposit Insurance Corporation and other officials have talked of a bank that would be created by the federal government to buy financial institutions’ bad assets.
I've been beating a dead horse since last fall, that we should have rechartered the Bank of the United States and instead of absorbing the bad paper and debts of banks and lending institutions, they should have been taken in whole. In other words we are not stuck with just the bad stuff, we get the assets as well. If they're that insolvent, then they're forfeited. No need to maintain an upper management structure that has failed and is paid well above GS and SES levels. When all the shenanigans with the Treasury and Congress are done, it would have been far cheaper in the long run to have followed that course. |