Treasury: Drop $50 billion fund from banking bill

[jefferson_dem]

Source: AP

Treasury: Drop $50 billion fund from banking bill
By JIM KUHNHENN, Associated Press Writer Jim Kuhnhenn, Associated Press Writer

WASHINGTON – The Obama administration is urging Senate Democrats to drop a $50 billion bank liquidation fund from a financial regulation bill. The money has become a target of Republicans, who have branded the fund a Wall Street bailout.

A senior Treasury official said Friday the administration does not support the fund and that it is unnecessary. Under pending Senate legislation, large financial institutions would provide the $50 billion, which the Federal Deposit Insurance Corp. would use to pay for dismantling giant failing firms.

Republicans are unified in their opposition to the regulation bill and say the fund would encourage banks to take excessive risks.

The administration instead wants the costs of liquidation to be paid by the financial industry after a firm has failed and been dismantled.


Read more: http://news.yahoo.com/s/ap/20100416/ap_on_go_pr_wh/us_financial_overhaul_fund_2/print

[safeinOhio]

1. Obama steals the Republican gold watch and sells it back

to them and they are now forever grateful. Why do they even try?

[FarLeftFist]

2. How would it be a bailout...

If it's not taxpayer money. Makes sense though, but the republicans can't help play the fear card.

[geckosfeet]

3. Isn't this the money used to cover customer deposits when banks fail?

[nealmhughes]

4. No, that is FSLIC and FDIC.

This is money to liquidate the banks when they fail. To pay off their creditors and auction off their offices and chairs and teller stands.

[geckosfeet]

6. thks

[TomCADem]

5. It Is A Red Herring By The Republicans, Take It Off The Table, Watch Them Squirm

The Republicans are really just interested in trying to keep derivatives unregulated. Yet, watch Fox News fool Tea Partiers into rallying in support of Wall Street.

[Lagomorph]

7. Ten robbers put...

10% of their loot on the table. Last man standing takes it all.