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Frank Leaning Toward Pre-Paying of Bailout Fund

Treasury Secretary Tim Geithner got an earful last week from House Democrats wary of the White House proposal to pay for government rescues of Wall Street firms

Jul 31, 2020
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Treasury Secretary Tim Geithner got an earful last weekfrom House Democrats wary of the White House proposal to pay for government rescues of Wall Street firms by taxing healthy competitors only afterWashington steps in. The critics want companies to pre-pay instead into a kind of sitting insurance fund to be used for the same purpose — a strategy also supported by Sheila Bair, who heads the Federal Deposit Insurance Corporation.
This week, Rep. Barney Frank (D-Mass.), the House Financial Services chairman whose systemic-risk legislation includes the after-the-fact fees urged by Geithner, says he’s now leaning toward the Bair plan. Indeed, The Wall Street Journal reports today that “a Frank aide on Friday said he now favors amending the measure to create a prepaid fund.”
There will be plenty of time to make the changes. Frank’s committee will meet tomorrow to begin marking up the bill, with debate on amendments not expected until Thursday, the Journal reports. No doubt some lawmakersare drooling at the chance to tweak the bill.
Dexter Cooke

Dexter Cooke

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Dexter Cooke is an economist, marketing strategist, and orthopedic surgeon with over 20 years of experience crafting compelling narratives that resonate worldwide. He holds a Journalism degree from Columbia University, an Economics background from Yale University, and a medical degree with a postdoctoral fellowship in orthopedic medicine from the Medical University of South Carolina. Dexter’s insights into media, economics, and marketing shine through his prolific contributions to respected publications and advisory roles for influential organizations. As an orthopedic surgeon specializing in minimally invasive knee replacement surgery and laparoscopic procedures, Dexter prioritizes patient care above all. Outside his professional pursuits, Dexter enjoys collecting vintage watches, studying ancient civilizations, learning about astronomy, and participating in charity runs.
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