Examiner Right to Oppose Unending Bank Bailouts (Letter to the Editor)

Examiner Right to Oppose Unending Bank Bailouts (Letter to the Editor)

April 22, 2010
Originally published in The Washington Examiner

The Examiner was right to oppose the Trojan horse financial “reform” bill that would enrich Goldman Sachs, the Wall Street firm that makes big donations to liberal politicians and was recently cited for fraud by the Securities and Exchange Commission. The bill deliberately does nothing to reform Fannie Mae and Freddie Mac, the government-backed mortgage giants, even though Treasury Secretary Timothy Geithner admits that “Fannie and Freddie were a core part of what went wrong in our system.” Instead of reform, Obama has showered Fannie and Freddie executives with $42 million in pay, while lifting a $400 billion limit on bailing them out. The financial “reform” bill undermines competition by effectively giving “too-big-to-fail” banks advantages over small banks. Banking expert Peter Wallison, who prophetically warned about Fannie Mae and Freddie Mac for years, is right when he says that Obama’s proposals could lead to “bailouts forever.”