Healthy Firms Getting Bailed Out, Too?
To hear the Bush administration promote its $700 billion bailout plan for Wall Street’s ailing financial institutions, the impression created is one of dire
Jul 31, 2020870.5K Shares14.5M Views
To hear the Bush administration promote its $700 billion bailout plan for Wall Street’s ailing financial institutions, the impression created is one of dire necessity: Without these taxpayer dollars, the message goes, the banks crumble, followed by the economy as a whole.
So it was curious yesterday when White House spokesman Tony Fratto — explaining why the administration opposes restrictions on executive pay for participating companies — revealed that it won’t just be struggling firms that will be able to benefit from the taxpayers’ gift. From the official transcript:
“„You have to remember, these are not all weak or troubled firms that own mortgage-backed securities. A lot of them are very successful banks and investment houses that have done very well, have been responsible, are holding performing assets that have value. They were not necessarily irresponsible players, and so you have to be careful about how you deal with them.
How you deal with them?
How you deal with them is to let them on their merry way. Certainly healthy companies have no need (and therefore, by definition, should not be permitted) to participate in the bailout, right?
And if the CEO pay limits would act to discourage healthy companies from grabbing taxpayer handouts, doesn’t that simply provide another reason why Congress should demand those limits be included?
Hat tip:Daily Kos.
Paolo Reyna
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Paolo Reyna is a writer and storyteller with a wide range of interests. He graduated from New York University with a Bachelor of Arts in Journalism and Media Studies.
Paolo enjoys writing about celebrity culture, gaming, visual arts, and events. He has a keen eye for trends in popular culture and an enthusiasm for exploring new ideas. Paolo's writing aims to inform and entertain while providing fresh perspectives on the topics that interest him most.
In his free time, he loves to travel, watch films, read books, and socialize with friends.
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