Posted on 04/08/2008 2:15:15 PM PDT by BGHater
Federal Deposit Insurance Corp. Chairwoman Sheila Bair said Monday policy makers needed to consider a more “activist” government response to prevent an escalation of foreclosures even if such measures aren’t “politically popular.” In a speech to the Equipment Leasing and Finance Association at a Washington hotel, Ms. Bair said policy makers must be “honest” with the American people about the need for such a move, adding that it would likely include some federal spending.
Among Ms. Bair’s points:
1) An activist government response with tax dollars is likely needed as voluntary loan modifications aren’t working fast enough.
“We’ve got a real problem. And I do think we need to have more activist approaches. And I think it will be something we need to be honest with the American public about. We do need more intervention. It probably will cost some money.”
2) Regulators are “increasingly concerned” about the risks posed by high concentrations of commercial real estate loans at banks, especially at financial institutions with between $1 billion and $10 billion in assets.
3) The Federal Reserve’s response to help rescue Bear Stearns has raised public policy questions about the lack of a federal mechanism to recognize when big investment banks run into major problems. She said this was different than the “prompt corrective action” rules for commercial banks that would immediately require a regulatory response if a bank fell into severe trouble.
“I think this has created additional interest in whether we need something like (prompt corrective action) for investment banks. I think now we potentially have this uneven situation.”
(Excerpt) Read more at blogs.wsj.com ...
“We’ve got a real problem. And I do think we need to have more activist approaches. And I think it will be something we need to be honest with the American public about. We do need more intervention. It probably will cost some money.” '
WTF? Enough already.
“I think this has created additional interest in whether we need something like (prompt corrective action) for investment banks. I think now we potentially have this uneven situation.”
Peter Principle in action Alert.
She is way past you competence level on things that are required in her job and is trying to look competence in something that has NOTHING to do with her job.
No kidding! All that should be offered is to transfer the note to a steady 30 year fixed with the delinquent payments attached to the note. If they can't handle that, then they aren't ready to afford the damn house in the first place!
Exactly. What the heck??
“response with tax dollars”
Why am I not surprised? Does anyone in the ‘pub party understand economics?
Can’t wait for the Fed to write off $300k on my house!!
Bingo.
I don’t care about bubble idiots.
Oh boy! This will translate into more government job hiring next month to offset the jobs lost report! Excellent news for the economy! /s
Sounds like a clinton appointee.
And amortize the closing costs.
It really is that simple.
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