IIF backs bad bank, Forbes, 3/13/09
…hesitation over up-front fiscal costs
and difficult pricing issues
fails to recognize that the real long-term costs to the economy of inaction
may well be much greater than the net fiscal imbalances over time
that are created by the bad bank approach
Action is needed now
A pragmatic approach
weighing both mark-to-market and cash flow valuations
can lead us out of this thicket
Institute of International Finance
IIF members include most of the world's largest commercial banks
as well as a growing number of insurance companies
and investment management firms
Associate members include multinational corporations
Are some who reaped exorbitant Wall Street bonuses
when mark to market accounting created gains
among those who want the same relatively accurate accounting suspended
as valuations retard profits?
Should shareholder and debt investors reap profits
from money borrowed from a nation’s children
to save companies responsible for creating the need to be bailed out?
Banks want G20 to set up pricey bad bank
Critics say the financial sector is holding the economy hostage, Marketwatch, 3/13/09
Should economic plans designed to fix large, complex predicaments
rely on those who created and profited from the initial problems
who may not have wanted to identify and confront them
when they were small, relatively unknown and lucrative?
The proposal of any new law or regulation
which comes from [businessmen]
ought always to be listened to with great precaution
and ought never to be adopted
till after having been long and carefully examined
not only with the most scrupulous, but with the most suspicious attention
It comes from an order of men
whose interest is never exactly the same with that of the public
who have generally an interest to deceive and even to oppress the public
and who accordingly have, upon many occasions
both deceived and oppressed it
Could financial market intervention delay real recovery?
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