Obama just seems to love the IMF and all things global.
'It is not acceptable that taxpayers should continue to bear the heavy cost of rescuing the banking sector ... I believe in the 'polluter pays' principle,' said internal market commissioner Michel Barnier, who drafted the proposals adopted by the EU's executive.
However, the commission was adamant that the funds should not be seen as an insurance against failure, as it stressed that they should 'be used not to bailout failing banks, but rather to facilitate (their) orderly failure.'
In other words, money should be used to provide bridge loans or to finance a split between a 'good bank' with sound assets and a 'bad bank' with non-performing ones, following a method often used in the recent financial crisis.
The commission only cited International Monetary Fund
(IMF) estimates saying they should range from 2 to 4 per cent of gross domestic product (GDP).
In a contrast to the approach followed by the United States, the EU executive ruled out using the funds to cover EU governments' budget deficits, which ballooned also as a result of the bailouts extended in recent years.
more here -
http://www.monstersandcritics.com/news/business/news/article_1558746.php/Banks-must-pay-for-their-own-crises-EU-commission-saysWhy plan on failure?
Why not plan so that banks don't fail? Hold bank management and internal/external/government auditors accountable for failure?
I see a future where wealthy Global Yankees buy companies, run them into the ground and deep in debt, all the while making off with amazing benefits/looting/scamming, knowing that in the end, there is the bailout fund. Time to let it go, and use the looted money to buy more government bargains.
Never-ending Obama/Dodd bailout/slush fund.
Anyone think there aren't greedy global players waiting, plotting, planning to cash in on the bailout fund?
Most, if not all states have funds for problem insurance companies. They fund the program by charging premium taxes on business. Some states do a better job than others with their watchdog responsibilities. So, the premium tax may change on an annual basis, and is different for each state.
Any chance the Federal government will do a good job keeping an eye on banks? Ensuring that they won't be mismanaged? Go belly up?
Any chance the Federal Reserve will do a good job keeping an eye on banks? Ensuring that they won't be mismanaged? Go belly up?
All I see in the Obama/Dodd finance reform package is a pot of gold for greedy speculators/looters/thieves/bankers/globalists/opportunists.Where is Glass-Steagall?
If you build the bailout they will come and ripp off everyone - taxpayers, other banks, and customers.
Another thought - the 2-4 percent is a new tax. How long before the taxes are going to foreigners? Any doubt that the 2-4 percent will be passed on to consumers?
just my humble opinions
