Attack of the Zombie Policy
Looks like Team Obama is going to resurrect the Paulson plan…or at least an early incarnation of that plant.
FDIC Chairman Sheila Bair is pushing to run the operation, which would buy the toxic assets clogging banks’ balance sheets, one of the people said. Bair is arguing that her agency has expertise and could help finance the effort by issuing bonds guaranteed by the FDIC, a second person said. President Barack Obama’s team may announce the outlines of its financial-rescue plan as early as next week, an administration official said.
“It doesn’t make sense to give the authority to anybody else but the FDIC,” said John Douglas, a former general counsel at the agency who now is a partner in Atlanta at the law firm Paul, Hastings, Janofsky & Walker. “That’s what the FDIC does, it takes bad assets out of banks and manages and sells them.”
Another $700 billion? Lets see, if this costs $700 billion, plus the $700 billion for TARP and Obama is on the verge of getting $900 billion…why its practically Christmas in America when you are spreading around $2.3 trillion dollars.