The govt has been slow to provide a clear explanation of their objectives in this bailout, once again the govt is delinquent in developing the proper regulatory controls needed to ensure the objectives are accomplished in an acceptable manner that properly manages the associated risks; and the govt. failed to define specific criteria by which it will measure the success of it actions.
- Banks buying other banks before they fail will prevent the added burden on the FDIC of another bank failure. It also prevents further asset declines in the purchased institution and shores up the market.
- Banks lending money to businesses and consumers can increase liquidity but where is the greatest need? Where can the loans make the greatest impact? How much money is needed?
Questions:
Are the banks that are using public funds pursuing priorities and objectives consistent with the govt's/public's priorities and objectives?
Does the govt. expect the banks to conduct themselves properly without govt. regulatory oversight?
Is the money targeted for areas of greatest need and/or areas where it can make the greatest impact?
How do we measure success?
From a Broker in Bandon, Port Orford, & Gold Beach Oregon
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