Wednesday, August 26, 2009

Another perversion of policy tied to the inapplicable, "taxpayer on the hook" belief

FDIC Adopts Weaker Rules to Lure Private Equity to Failed Banks

The FDIC is giving handouts to private equity funds and other private pools of capital on the perverted belief that this somehow takes some non-existent burden off of taxpayers.

Many of the players who are now getting these handouts were some of the same speculators and money operators who targeted these institutions for demise last year. They attacked them with short selling and other forms of manipulation; now the government is handing over the assets to these folks--assets that rightly belong to common shareholders.

As if this were not bad enough, many taxpayers got hosed last year when their own investments in banks stocks--which received no special capital ratio treatment--were wiped out by the government in cases where it had lent a helping hand.

Now they're getting hosed twice!

This constintutes nothing more than a massive wealth transfer to the richest people in the nation, all happening under the most liberal president since Johnson--a president who promised to help workers, but is doing everything to support Wall Street speculators but suppress wages of the working class at the same time.

It's an outrage!

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