Libertarian Party Executive Director Wes Benedict issued the following statement today, regarding the financial regulation legislation in Congress:
"The Libertarian Party opposes the legislation currently in Congress. Instead of removing harmful regulations that reduce competition, create winners and losers, and stifle the choices of consumers and financial firms, this legislation merely adds to that heap of regulations.
"It is remarkable that so many people have blamed the banking and financial company failures on the 'free market.' The American finance industry is probably the most regulated industry in human history. It doesn't remotely resemble a free market, and that's been true for many decades. It would be much more accurate to blame the failures on government interference.
"The 2008 TARP bailouts were strongly supported by both Republicans and Democrats. Presidential candidates Barack Obama and John McCain both supported them--Senator McCain even 'suspended his campaign' to rush back to Washington and help push through the massive bailouts. On the other hand, Libertarian presidential candidate Bob Barr firmly opposed those bailouts, and the Libertarian Party has continued to express our opposition since then.
"We're seeing the typical cycle of government regulation:
1. Add more regulations.
2. Watch the new regulations create new problems.
3. Blame the free market.
4. Go to step 1.
"The 2008 TARP bailouts were rationalized with the 'too big to fail' phantom -- the notion that if a big company goes bankrupt, then all financial activity will cease, and the world will basically end. It was one more example of government creating a 'fear of catastrophe' to get people to knuckle under to big government payouts.
"Another major problem with protective government regulation is that it gives consumers the false impression that 'everything's OK, the government will make sure you can't be hurt.' That causes consumers to stop doing their homework, and stop keeping an eye on the businesses they depend on. Then, when the government regulators fail in their job (as the SEC has repeatedly, for example), consumers get hurt much worse than they would if they had never been told the government was taking care of them.
"The problem isn't too little regulation, but too much. Banks, insurance companies, and other financial companies must be allowed to operate freely in a free market, and they must be allowed to fail. No other system will work. Heaping more regulations on top of the already enormous financial regulation pile will only lead to new problems."
Mark A. Calabria of the Cato Institute, writing in the New York Post, commented, "Far from protecting the little guy and sticking it to the fat cats, this bill keeps good, old-fashioned political patronage alive and well."
The Libertarian Party's Platform states: "We favor free-market banking, with unrestricted competition among banks and depository institutions of all types."
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Showing posts with label TARP. Show all posts
Showing posts with label TARP. Show all posts
Friday, April 30, 2010
Tuesday, May 5, 2009
New Poll Shows American Public Supports Immediate TARP Repayment: Senate Vote Risks Public Ire
/PRNewswire/ -- A poll commissioned by National Media Inc. over the weekend demonstrates that an overwhelming majority of Americans believe that healthy banks should be allowed to repay TARP investments immediately. Of the one thousand respondents, 86 percent believe that banks should be allowed to repay the government immediately, if they are capable of doing so. Only 11 percent disagreed.
"Last night the U.S. Senate had the opportunity to allow banks who are financially sound to repay their TARP money, but failed to do so," said Alex Castellanos, a Republican strategist and commentator. "This is counter to the American public's desire and some of the better respected experts and elected officials on this issue."
Additionally, 75 percent of those polled believe taxpayers should expect a return on their investment when the funds are repaid. If informed of a hypothetical return -- 10 percent was used in the poll -- 65 percent of respondents are more likely to support the TARP program (Actual return will vary based on valuation of the warrants that Treasury hold in each TARP bank. Analysts have stated that returns could be as high as 15 percent.)
"The data shows that policymakers would have gotten more support for the TARP if it had been more clearly understood that the taxpayers would get a return on their investment," said Castellanos. "One of the most controversial acts of the financial crisis could have been politically more palatable to taxpayers if they'd understood the TARP was designed to produce a return on investment, not just throw taxpayers' money to the wind."
TARP Perception Survey Questions:
Q1. Last fall, in order to address the financial crisis, the government
invested hundreds of billions of dollars in banks and financial
institutions. This initiative is known by the acronym TARP. Do you
think the TARP investments were a good idea?
Yes - 31%
No - 54%
Don't know/ No Response - 16%
Q2. If a bank has the financial strength to pay the government back,
should they be allowed to do so immediately?
Yes - 86%
No - 11%
Don't know/ No Response - 4%
Q3. As healthy banks repay this money to the government, should taxpayers
expect a return on this investment?
Yes - 75%
No - 19%
Don't know/ No Response - 6%
Q4. If you knew that taxpayers were going to get a return on their TARP
investment, say 10%, would you be more or less supportive of the TARP
program?
More - 64%
No -23%
Don't know/ No Response - 13%
National Media Inc. periodically commissions surveys in its ongoing research and analysis of the public policy issues of the day. This poll was conducted in coordination with GfK Custom Research, North America.
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"Last night the U.S. Senate had the opportunity to allow banks who are financially sound to repay their TARP money, but failed to do so," said Alex Castellanos, a Republican strategist and commentator. "This is counter to the American public's desire and some of the better respected experts and elected officials on this issue."
Additionally, 75 percent of those polled believe taxpayers should expect a return on their investment when the funds are repaid. If informed of a hypothetical return -- 10 percent was used in the poll -- 65 percent of respondents are more likely to support the TARP program (Actual return will vary based on valuation of the warrants that Treasury hold in each TARP bank. Analysts have stated that returns could be as high as 15 percent.)
"The data shows that policymakers would have gotten more support for the TARP if it had been more clearly understood that the taxpayers would get a return on their investment," said Castellanos. "One of the most controversial acts of the financial crisis could have been politically more palatable to taxpayers if they'd understood the TARP was designed to produce a return on investment, not just throw taxpayers' money to the wind."
TARP Perception Survey Questions:
Q1. Last fall, in order to address the financial crisis, the government
invested hundreds of billions of dollars in banks and financial
institutions. This initiative is known by the acronym TARP. Do you
think the TARP investments were a good idea?
Yes - 31%
No - 54%
Don't know/ No Response - 16%
Q2. If a bank has the financial strength to pay the government back,
should they be allowed to do so immediately?
Yes - 86%
No - 11%
Don't know/ No Response - 4%
Q3. As healthy banks repay this money to the government, should taxpayers
expect a return on this investment?
Yes - 75%
No - 19%
Don't know/ No Response - 6%
Q4. If you knew that taxpayers were going to get a return on their TARP
investment, say 10%, would you be more or less supportive of the TARP
program?
More - 64%
No -23%
Don't know/ No Response - 13%
National Media Inc. periodically commissions surveys in its ongoing research and analysis of the public policy issues of the day. This poll was conducted in coordination with GfK Custom Research, North America.
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Thursday, January 22, 2009
Blunt Votes Against Releasing Additional Taxpayer Funds, Supports Accountability Report
/PRNewswire-USNewswire/ -- Missouri Congressman Roy Blunt today voted against releasing the second installment of funds under the government's financial rescue package, called the Troubled Assets Relief Program.
"Congress passed a financial rescue package with taxpayer protections last year but that package has become nothing more than a bailout," Blunt said. "I agree with the majority of Americans and Missourians that we cannot release the second installment of taxpayer funds."
The House voted on a "resolution of disapproval," meaning Blunt's yes vote would block access to the bailout funds.
Blunt yesterday voted for an amendment requiring the Treasury Department to obtain information from TARP fund recipients on how the money was allocated and conduct an analysis on the use of the funds. The original package passed by Congress, and negotiated with Treasury officials, contained taxpayer protections and outlined how the funds could be used. The Treasury Department, however, used the funds in ways not intended or discussed during negotiations.
"I am disappointed that the administration of this program has failed in its most basic goal of granting more credit for deserving families and businesses," Blunt said. "There has been too much irresponsibility in the management of the first installment and I believe the Treasury owes it to the American taxpayers to disclose how their money was spent.
"The second half of these funds will ultimately be used. I hope that it is used for the program's original intent and not as an unaccountable handout that doesn't do what we intended to help our economy."
Under the guidelines of the package Congress passed last year, both the House and Senate would have to pass the disapproval resolution for additional funds to be stopped. The Senate has already voted to allow the release of the second TARP installment.
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"Congress passed a financial rescue package with taxpayer protections last year but that package has become nothing more than a bailout," Blunt said. "I agree with the majority of Americans and Missourians that we cannot release the second installment of taxpayer funds."
The House voted on a "resolution of disapproval," meaning Blunt's yes vote would block access to the bailout funds.
Blunt yesterday voted for an amendment requiring the Treasury Department to obtain information from TARP fund recipients on how the money was allocated and conduct an analysis on the use of the funds. The original package passed by Congress, and negotiated with Treasury officials, contained taxpayer protections and outlined how the funds could be used. The Treasury Department, however, used the funds in ways not intended or discussed during negotiations.
"I am disappointed that the administration of this program has failed in its most basic goal of granting more credit for deserving families and businesses," Blunt said. "There has been too much irresponsibility in the management of the first installment and I believe the Treasury owes it to the American taxpayers to disclose how their money was spent.
"The second half of these funds will ultimately be used. I hope that it is used for the program's original intent and not as an unaccountable handout that doesn't do what we intended to help our economy."
Under the guidelines of the package Congress passed last year, both the House and Senate would have to pass the disapproval resolution for additional funds to be stopped. The Senate has already voted to allow the release of the second TARP installment.
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Monday, January 12, 2009
Pelosi Statement on Request for Second $350 Billion in TARP Funds
/PRNewswire-USNewswire/ -- Speaker Nancy Pelosi issued the following statement today on President Bush's expected request of the second $350 billion of funds in the Troubled Asset Relief Program (TARP).
"Congress will soon receive a formal request from the Bush Administration to release the second half of the financial rescue funds. The request comes the same week the House will vote on Chairman Barney Frank's reform and accountability legislation to address the many shortcomings in the Bush Administration's handling of the first $350 billion in TARP funds, used largely to bolster the balance sheets of banks. Millions of Americans have lost their jobs or face the prospect of foreclosure, and it is past time that we helped these families bolster their balance sheets.
"Chairman Frank's legislation makes significant changes to the financial rescue package - from requiring strengthened oversight and transparency to additional foreclosure relief. At a minimum, the legislation will require $40 billion from the TARP for initiatives to keep families in their homes.
"The legislation will require that financial institutions specify how they will spend taxpayer dollars, ensuring that the second $350 billion in TARP comes with clear and specific strings attached.
"Congress and the incoming Obama Administration will work together to protect taxpayers, address the foreclosure crisis, and to bolster our economy."
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"Congress will soon receive a formal request from the Bush Administration to release the second half of the financial rescue funds. The request comes the same week the House will vote on Chairman Barney Frank's reform and accountability legislation to address the many shortcomings in the Bush Administration's handling of the first $350 billion in TARP funds, used largely to bolster the balance sheets of banks. Millions of Americans have lost their jobs or face the prospect of foreclosure, and it is past time that we helped these families bolster their balance sheets.
"Chairman Frank's legislation makes significant changes to the financial rescue package - from requiring strengthened oversight and transparency to additional foreclosure relief. At a minimum, the legislation will require $40 billion from the TARP for initiatives to keep families in their homes.
"The legislation will require that financial institutions specify how they will spend taxpayer dollars, ensuring that the second $350 billion in TARP comes with clear and specific strings attached.
"Congress and the incoming Obama Administration will work together to protect taxpayers, address the foreclosure crisis, and to bolster our economy."
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Friday, December 12, 2008
Statement by Whie House Press Secretary Dana Perino
It is disappointing that while appropriate and effective legislation to assist and restructure troubled automakers received majority support in both houses, Congress nevertheless failed to pass final legislation. The approach in that legislation provided an opportunity to use funds already appropriated for automakers, and presented the best chance to avoid a disorderly bankruptcy while ensuring taxpayer funds go only to firms whose stakeholders were prepared to make the difficult decisions to become viable, competitive firms in the future.
Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms. However, given the current weakened state of the U.S. economy, we will consider other options if necessary - including use of the TARP program -- to prevent a collapse of troubled automakers. A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time.
While the federal government may need to step in to prevent an immediate failure, the auto companies, their labor unions, and all other stakeholders must be prepared to make the meaningful concessions necessary to become viable.
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Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms. However, given the current weakened state of the U.S. economy, we will consider other options if necessary - including use of the TARP program -- to prevent a collapse of troubled automakers. A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time.
While the federal government may need to step in to prevent an immediate failure, the auto companies, their labor unions, and all other stakeholders must be prepared to make the meaningful concessions necessary to become viable.
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