The change and recovery
By Daniel at 6 May, 2009, 9:50 pm
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The Bush and Obama administrations have not acted swiftly nor radically enough. Their administrations have applied band-aids to a leg that simply needs to be surgically severed. Here is a true program for change and recovery.
Finance Industry Tough Love Manifesto
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O Require repayment of all TARP funds within the next 24 months
O Make chapter 7/11 the default path for troubled/insolvent banks/institutions.
O State outright that the US taxpayer does not stand behind losses of any private bank/institution.
O Immediately fire Geitner and Summers and replace them with banking industry outsiders
O Replace the boards and CEOs of all troubled banks with banking industry outsiders
O Outlaw all new home loans except for fully conforming loans
O Forbid the future sale of any loan insurance products. All risk is priced into the loan.
O Reinstate Glass-Steagall
O Forbid private equity firms from owning banks
O Configure, by law, all banking industry bonuses to be in stock options vesting over 10 years with a heavy back end loading
O Forbid TARP recipients from lobbying congress or making political donations for 10 years
O Forbid any employee of or investor in a TARP recipient from holding a position in government for 10 years
Just a beginning, I know.
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