PatriotOne
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More lies from Paulson. Here's the deal folks. What they are doing is infusing money into these banks so they are in a position to be the New World Order global money lenders. Mark my words. Those banks that are benefitting from this "bail-out" will be part of the new proposed Global Banks they will be talking about at the upcoming summit. As Rockefeller said:
"We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries." David Rockefeller
Paulson Says Treasury Is Shifting Focus of Bailout
By DAVID STOUT
Published: November 12, 2008
http://www.nytimes.com/2008/11/13/business/economy/13bailout.html?partner=rss&emc=rss
WASHINGTON — Treasury Secretary Henry M. Paulson Jr. announced a major shift in the thrust of the $700 billion financial-rescue program on Wednesday, at the same time joining several agencies in prodding banks to speed up the thaw in the country’s credit system.
Skip to next paragraph
Related
Lobbyists Swarm the Treasury for Piece of Bailout Pie (November 12, 2008)
CNBC Video: Paulson Bailout Update | Part 1 | Part 2 | Part 3
Text: Paulson's Remarks
Fed-Treasury-F.D.I.C. Statement on Lending and Bank Practices Readers' Comments
What do you think about the revised bailout strategy?
Post a Comment »Read All Comments (53) »Mr. Paulson said the $700 billion would not be used to buy up troubled mortgage-related securities, as the rescue effort was originally conceived, but would instead be used in a broader campaign to bolster the financial markets and, in turn, make loans more accessible for creditworthy borrowers seeking car loans, student loans and other kinds of borrowing.
“During times like these with a slowing economy and some deterioration in credit conditions, even the healthiest banks tend to become more risk-averse and restrain lending, and regulators’ actions have reinforced this lending restraint in the past,” Mr. Paulson said at a news conference.
But, he added pointedly, with their financial foundations already shored up by recent government support, “our banks will be more confident and better positioned to play their necessary role to support economic responsibility.”
Mr. Paulson also pledged intensified government efforts to help struggling homeowners and said he and his aides were “examining strategies to mitigate” foreclosures. But he said any government aid for the ailing automobile industry would not come from the $700 billion.
Although Mr. Paulson did not mention possible penalties for banks that are reluctant to open their money spigots, there was no mistaking the tone of his message, coupled as it was with a statement from several financial regulatory agencies that they “expect all banking organizations to fulfill their fundamental role in the economy as intermediaries of credit to businesses, consumers and other creditworthy borrowers.”
Mr. Paulson also said the Treasury’s capital infusions through the Troubled Asset Relief Program, known as TARP, might also be aimed at other kinds of financial institutions.
“We are carefully evaluating programs which would further leverage the impact of a TARP investment by attracting private capital, potentially through matching investments,” he said. “In developing a potential matching program, we will also consider capital needs of nonbank financial institutions not eligible for the current capital program; broadening access in this way would bring both benefits and challenges.”
Asked about possible aid for the automobile industry, Mr. Paulson said, “My focus is on the financial sector.” Thus, while declaring that “we care about our auto industry,” he ruled out any role in the TARP effort for bailing out Detroit, an issue that is now occupying Congress, President-elect Barack Obama and President Bush.
A separate $25 billion loan program was approved in September to help carmakers develop fuel-efficient vehicles. Congress is expected to meet next week to discuss a broader rescue plan for the auto industry. Democrats are pushing for such a plan, but the administration has resisted, although President Bush’s spokeswoman, Dana Perino, repeated on Wednesday the White House’s promise to “work with Congress” and be “open to their ideas.”
Weeks ago, in lobbying Congress to enact the TARP legislation, the administration described the program as one to buy up the opaque and toxic mortgage-related assets that are at the heart of the housing crisis that set off the country’s worst financial ordeal since the Great Depression.
“Over these past weeks, we have continued to examine the relative benefits of purchasing illiquid mortgage-related assets,” Mr. Paulson said. Explaining the shift in emphasis, he said, “Our assessment at this time is that this is not the most effective way to use TARP funds,” while stressing that he and others working on the bailout have not ruled out “targeted forms of asset purchase.”
The interagency statement that lent more force to Mr. Paulson’s remarks was issued by the board of the Federal Reserve System; the Federal Deposit Insurance Corporation, which protects the deposits of individual bank customers; the Office of the Comptroller of the Currency; and the Office of Thrift Supervision.
Both Mr. Paulson and the agencies emphasized that their message to banks was not meant only for those that have benefited directly from infusions of money from the government. “Lending to creditworthy borrowers provides sustainable returns for the lending organization and is constructive for the economy as a whole,” the agencies said.
Moreover, the agencies said, they “expect banking organizations to work with existing borrowers to avoid preventable foreclosures.”
The agencies also addressed an issue that has angered the American public: the enormous salaries paid to many high-ranking executives of the financial world and the “golden parachutes” bestowed upon some of them as farewell gifts even as they are ousted for failing at their jobs.
“Poorly designed management compensation policies can create perverse incentives that can ultimately jeopardize the health of the banking organization,” the agencies said, adding that they expect banking institutions “to regularly review their management compensation policies.”
The regulators’ statement called on lending institutions to be aggressive in aiding struggling homeowners — that is, “to adopt systematic, proactive and streamlined mortgage-loan modification protocols.”
Asked whether he envisioned adding more billions to the rescue plan, Mr. Paulson said he was “still comfortable” with the $700 billion figure.
Although the secretary said the steps taken since the onset of the crisis had brought “signs of improvement,” he added, “Our financial system remains fragile in the face of an economic downturn here and abroad.”
President Bush will be host at an economic summit meeting this weekend in Washington, where leaders of a score of nations will discuss a coordinated response to the worst global financial crisis in eight decades.
"We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries." David Rockefeller
Paulson Says Treasury Is Shifting Focus of Bailout
By DAVID STOUT
Published: November 12, 2008
http://www.nytimes.com/2008/11/13/business/economy/13bailout.html?partner=rss&emc=rss
WASHINGTON — Treasury Secretary Henry M. Paulson Jr. announced a major shift in the thrust of the $700 billion financial-rescue program on Wednesday, at the same time joining several agencies in prodding banks to speed up the thaw in the country’s credit system.
Skip to next paragraph
Related
Lobbyists Swarm the Treasury for Piece of Bailout Pie (November 12, 2008)
CNBC Video: Paulson Bailout Update | Part 1 | Part 2 | Part 3
Text: Paulson's Remarks
Fed-Treasury-F.D.I.C. Statement on Lending and Bank Practices Readers' Comments
What do you think about the revised bailout strategy?
Post a Comment »Read All Comments (53) »Mr. Paulson said the $700 billion would not be used to buy up troubled mortgage-related securities, as the rescue effort was originally conceived, but would instead be used in a broader campaign to bolster the financial markets and, in turn, make loans more accessible for creditworthy borrowers seeking car loans, student loans and other kinds of borrowing.
“During times like these with a slowing economy and some deterioration in credit conditions, even the healthiest banks tend to become more risk-averse and restrain lending, and regulators’ actions have reinforced this lending restraint in the past,” Mr. Paulson said at a news conference.
But, he added pointedly, with their financial foundations already shored up by recent government support, “our banks will be more confident and better positioned to play their necessary role to support economic responsibility.”
Mr. Paulson also pledged intensified government efforts to help struggling homeowners and said he and his aides were “examining strategies to mitigate” foreclosures. But he said any government aid for the ailing automobile industry would not come from the $700 billion.
Although Mr. Paulson did not mention possible penalties for banks that are reluctant to open their money spigots, there was no mistaking the tone of his message, coupled as it was with a statement from several financial regulatory agencies that they “expect all banking organizations to fulfill their fundamental role in the economy as intermediaries of credit to businesses, consumers and other creditworthy borrowers.”
Mr. Paulson also said the Treasury’s capital infusions through the Troubled Asset Relief Program, known as TARP, might also be aimed at other kinds of financial institutions.
“We are carefully evaluating programs which would further leverage the impact of a TARP investment by attracting private capital, potentially through matching investments,” he said. “In developing a potential matching program, we will also consider capital needs of nonbank financial institutions not eligible for the current capital program; broadening access in this way would bring both benefits and challenges.”
Asked about possible aid for the automobile industry, Mr. Paulson said, “My focus is on the financial sector.” Thus, while declaring that “we care about our auto industry,” he ruled out any role in the TARP effort for bailing out Detroit, an issue that is now occupying Congress, President-elect Barack Obama and President Bush.
A separate $25 billion loan program was approved in September to help carmakers develop fuel-efficient vehicles. Congress is expected to meet next week to discuss a broader rescue plan for the auto industry. Democrats are pushing for such a plan, but the administration has resisted, although President Bush’s spokeswoman, Dana Perino, repeated on Wednesday the White House’s promise to “work with Congress” and be “open to their ideas.”
Weeks ago, in lobbying Congress to enact the TARP legislation, the administration described the program as one to buy up the opaque and toxic mortgage-related assets that are at the heart of the housing crisis that set off the country’s worst financial ordeal since the Great Depression.
“Over these past weeks, we have continued to examine the relative benefits of purchasing illiquid mortgage-related assets,” Mr. Paulson said. Explaining the shift in emphasis, he said, “Our assessment at this time is that this is not the most effective way to use TARP funds,” while stressing that he and others working on the bailout have not ruled out “targeted forms of asset purchase.”
The interagency statement that lent more force to Mr. Paulson’s remarks was issued by the board of the Federal Reserve System; the Federal Deposit Insurance Corporation, which protects the deposits of individual bank customers; the Office of the Comptroller of the Currency; and the Office of Thrift Supervision.
Both Mr. Paulson and the agencies emphasized that their message to banks was not meant only for those that have benefited directly from infusions of money from the government. “Lending to creditworthy borrowers provides sustainable returns for the lending organization and is constructive for the economy as a whole,” the agencies said.
Moreover, the agencies said, they “expect banking organizations to work with existing borrowers to avoid preventable foreclosures.”
The agencies also addressed an issue that has angered the American public: the enormous salaries paid to many high-ranking executives of the financial world and the “golden parachutes” bestowed upon some of them as farewell gifts even as they are ousted for failing at their jobs.
“Poorly designed management compensation policies can create perverse incentives that can ultimately jeopardize the health of the banking organization,” the agencies said, adding that they expect banking institutions “to regularly review their management compensation policies.”
The regulators’ statement called on lending institutions to be aggressive in aiding struggling homeowners — that is, “to adopt systematic, proactive and streamlined mortgage-loan modification protocols.”
Asked whether he envisioned adding more billions to the rescue plan, Mr. Paulson said he was “still comfortable” with the $700 billion figure.
Although the secretary said the steps taken since the onset of the crisis had brought “signs of improvement,” he added, “Our financial system remains fragile in the face of an economic downturn here and abroad.”
President Bush will be host at an economic summit meeting this weekend in Washington, where leaders of a score of nations will discuss a coordinated response to the worst global financial crisis in eight decades.
