< Back to Front Page Text size +

Candidates back aid for big banks

Posted by Foon Rhee, deputy national political editor October 14, 2008 02:04 PM

Both John McCain and Barack Obama grudgingly supported the Bush administration's plan to invest $250 billion in the nation's biggest banks, and cautioned that the executives who caused the problem shouldn't be rewarded.

McCain told supporters in Pennsylvania that the plan should only last until the banks are on a solid ground again.

"When that is accomplished, government will relinquish its interest in these private companies. We're going to get the government out of the business of bailouts and equity stakes and back in the business of responsible regulation," McCain said. "We will learn from this crisis to prevent the next one, with much stricter oversight. No more wild overleveraging, no more liabilities concealed from the public and from shareholders, no more bundling of assets to maximize profit by assuming insane risks. Those days are over on Wall Street."

Obama, who is off the campaign trail today preparing for Wednesday night's debate, issued a statement:

"The Treasury Department’s concept of investing money directly into struggling banks so they can lend money to families and businesses is the right one. But 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, something I have warned against from the first day of this financial crisis. Taxpayers who are now invested in Goldman Sachs should not be treated worse than when Warren Buffett invested in Goldman Sachs. 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. And we must make sure that these institutions are helping homeowners stay in their homes, which includes abiding by a 90 day moratorium on foreclosures for families who are making a good faith effort to pay their mortgages. Finally, the plan appears to extend a broader set of guarantees to banks without requiring any additional regulation, which represents more of the same failed philosophy that got us into this mess.

“I will 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.”

  • CommentComment
  • EmailEmail
add your comment *(If you put a URL in your comment, it must be relevant )
Required
Required (will not be published)

This blogger might want to review your comment before posting it.

About Political Intelligence

Reports from Boston Globe reporters and editors about the Obama administration, the Massachusetts congressional delegation, and other national political happenings.

News from the Washington Bureau

Beirut attack victims’ families face new hurdle

On Veterans Day, Christine Devlin stood in the cold in Westwood for the unveiling of a new memorial to local soldiers lost overseas, including her son Michael, one of the 241 servicemen killed in the bombing of the US Marine barracks in Lebanon in 1983. (Globe Staff, 12:43 a.m.)

FHA runs low on cash, fueling bailout concerns

The Federal Housing Administration, which propped up the collapsing housing market last year, acknowledged yesterday that it has drained its cash reserves to dangerously low levels, heightening concerns that it might need a taxpayer bailout. (Globe Staff, 11/13/09)

Powerful health care groups offer optimism on overhaul

Two leading health care interest groups, representing insurers and big business, struck a more conciliatory, even optimistic tone on the health care overhaul yesterday, emphasizing their support of the overall goal of increasing coverage and containing costs even as they warned that the wrong bill could cause great harm. (Globe Staff, 11/13/09)

Afghanistan wary of US plan to send more advisers

Afghan officials have begun to push back from the Obama administration's plans to send hundreds of advisers to the country, complaining the Americans are often overpaid, underqualified, and unfamiliar with the culture of the country. (Globe Staff, 11/12/09)

Earmarks’ cash flow lifts firms, lobbyists, lawmakers

16 defense-related firms in Massachusetts have secured nearly $30 million in federal funding in next year's defense appropriations bill pending in Congress. The tally offers a lesson in the practice known as congressional earmarking, in which lawmakers direct federal money to specific projects, usually in their districts. (Globe Staff, 11/12/09)

Mass. keeps an eye on US bill’s funding ban

Massachusetts officials are closely monitoring an abortion funding ban in the sweeping health care legislation before Congress to make sure that it does not restrict women’s access to abortion coverage in the state. (Globe Staff, 11/11/09)

Survey raises new doubts on military’s ‘don’t ask’ policy

WASHINGTON - The Obama administration received more research yesterday to help make its case for allowing gays and lesbians to serve openly in the armed forces. (Globe Staff, 11/10/09)

Lieberman’s threat of filibuster looms large

When a recent conversation among Senate centrists turned to insurance company antitrust concerns, Joe Lieberman boasted of his bona fides: As Connecticut attorney general in the 1980s, he sued the industry. (Globe Correspondent, 11/9/09)

Health care headache for House Democrats

WASHINGTON - Democratic House leaders scrambled to round up enough support yesterday for their sweeping health care overhaul, getting last-minute help from White House advisers on the eve of a historic vote scheduled for today. (Globe Staff, 11/7/09)

Health care opponents intensify late attack

WASHINGTON - The sweeping health care overhaul package before Congress is under an 11th-hour attack over a pair of emotional issues, abortion and immigration, that are complicating Democrats’ efforts to piece together the coalition they need to pass the bill. (Globe Staff, 11/6/09)
archives