Cautious Support From Obama for Banking Plan
By Shailagh Murray
TOLEDO, Ohio -- Sen. Barack Obama offered lukewarm support, along with multiple caveats, to the Bush administration's decision to partially nationalize the U.S. banking industry by investing $250 billion in keep ailing institutions afloat.
The Democratic nominee called the basic idea "the right one," because of the potential harm if no action is taken, but added, "We must make sure this plan is implemented in a way that helps homeowners and does not enrich Wall Street CEOs at the taxpayers' expense." Obama advisers said the senator from Illinois relayed his concerns to Treasury Secretary Henry Paulson on Monday, when Paulson called Obama to brief him about the plan.
In a statement, Obama said he would be "studying the details of this deal to make sure we can advance the core concept while still protecting taxpayers and ensuring that CEOs are not being enriched on our dime."
He said the move was right in theory. "Injecting capital into our financial institutions is essential to stabilizing our economy, but we must make sure we are not giving sweetheart, insider deals that shift the risk to taxpayers without giving them sufficient upside," Obama said.
He urged the administration to enact his proposal, announced yesterday, to place a 90-day moratorium on foreclosures for people who are making good-faith efforts to pay. He also raised alarms that today's Treasury move "appears to extend a broader set of guarantees to banks without requiring any additional regulation, which represents the same failed philosophy that got us into this mess."
Posted at 12:24 PM ET on Oct 14, 2008
Share This: Technorati | Tag in Del.icio.us | Digg This
Previous: 'Gossip Girl' Stars Featured in New MoveOn Ad | Next: A Race Against Foreclosure
Please email us to report offensive comments.
Posted by: Manolete | October 14, 2008 3:59 PM
Posted by: DrainYou | October 14, 2008 2:30 PM
Posted by: scrivener50 | October 14, 2008 2:06 PM
Posted by: rooster54 | October 14, 2008 2:02 PM
Posted by: DrainYou | October 14, 2008 1:38 PM
Posted by: pastor123 | October 14, 2008 1:26 PM
Posted by: pastor123 | October 14, 2008 1:23 PM
Posted by: jrob822 | October 14, 2008 12:44 PM
The comments to this entry are closed.