….and that is largely the crux of the matter. I will make the following comments.

1. In certain situations where the losses are so great as to render the bank insolvent the assets should be transferred to Bank Transition, other divisions that have value should be sold or spun off, the doors can then be shut with shareholders largely wiped out and bondholders accruing some percentage of return based on how much value is gained in selling divisions.

2. In other situations, we would have variations on that scenario of differring measures.

I will admit that this is a situation in which NOBODY will be happy.

3. One final comment, I do believe that in forming a Bank Transition and transferring assets into it in a transparent process that private capital will be attracted to buy assets. Having that happen will be enormously beneficial and ultimately critically important to the process.

These guys are all financially incesuous pigs and it’s like having a bunch of foxes guarding the chickens.

I don’t trust him (I believe he’s just the spokesman), Reid, Pelosi and committee chairmen like Dodd, Franks, Obie and the like. It’s the republicans all over again.

The Federal Reserve is not owned by the Federal Government but is a private corporation owned by 10 banks, most of which are foreign banks. David Rockefeller owns 22% of the Federal Reserve. The Federal Reserve is a central system of banking owned both privately and publicly to control the supply of money in the American economy and to set fiscal policy. The names of the members that sit on the Federal Reserve’s Governor’s board are kept private.

When the Federal Reserve Act was passed on Dec.13, 1913, Charles Lindbergh, who was a congressman at the time, said – “The Act establishes the most gigantic trust on earth. When the president signs this bill, the invisible government of the monetary power will be legalized. The greatest crime of the ages is perpetuated by this banking and currency bill”.

When Woodrow Wilson signed this bill into law in 1913 he gave this entity the power to control our very existence.

“Power corrupts, and absolute power corrupts absolutely” – Lord Acton -

With David Rockefeller’s tentacles entwined in the Federal Reserve, The Bilderberg Group, The Trilateralist Commission, etc. we have a right to be uncomfortable. These people have been preaching “New World Order” for years. With each bail-out and government takeover of banks and business, we are descending ever deeper into the hands of the money men.

I appreciate your concern and level of distrust. This Bank Transition needs a few things in order to make it effective.

1.transparency
2.joint efforts between government, bankers, and independent overseers
3. competitive auction process for purposes of selling assets that are taken over…

Away from Bank Transition, the FDIC should
4. take over banks that are deemed insolvent, sell the divisions that have value and close the doors.

Regulators need to
5. be fully engaged and proactive in managing bank capital ratios

In order for our economy to get back on track the blood (money) needs to flow.

IMO, Bank Transition is not the only part of the equation but it is an important piece. There are plenty of questions about implementation and execution but I do think that some form of it needs to occur.

Thanks for writing.

IMO, I dont trust the ‘good bank’ scenario where the government (and in the long run -the taxpayers) buy toxic assets back from the private banks so that this can free up the private banks so that they can inject more money to the economy via increased credit.

This is being considered all in the name of preventing the nationalization of our banking system?
What’s up with that? Has anyone really studied what would happen if our government owned the banks?

Are we really better off with a banking system made up of private banks who are SUPPOSIDLY held to accountability to the public by our quasi public federal reserve system members?

I could be wrong however the buyback of toxic assets reminds me of what happened recently with the buyback, repackaging and remarketing of the bad mortgages. All these repackaged mortgage-based assets were then bought by who? Major investors-including pension fund managers. Who gets hurt in the end-the taxpayer.

I am not comfortable with our quasi private federal reserve system.

He who controls the printing of money and the issuance of credit controls the nation.

Who really controls the economy- the government? the taxpayers? laws of economics? or…FOR PROFIT PRIVATE BANKERS whose purpose for existance is to increase return on investments?

Your point is well taken. I view so much of what comes out of Washington politicos and Wall Street management as “pandering” to the public. It truly motivates me in my writing.

LD, you didn’t really believe him, did you?

I’ve become more cynical by the minute over the past 8 years, so I always look for the agenda now. I have no hope left that anyone will ever be held to account for anything–except little people who are powerless against the state.

Take a look at this payroll tax cut in the stimulus bill. It’s going to weaken social security, and the very people who will need every dime of their social security in the future, because they don’t have a pension, are the ones who will not have enough social security credits paid into the system.

If there is any Social Security in the future.

Employers won’t have to match the 6.2 % on employees’ payroll taxes, so it’s a great tax cut for them, but then they never have to worry about paying the costs for it later, while workers will lose SS credits and receive less SS in the end, right?

Lesson? People are going back to quality. In the 60′s, people bought Pendalton shirts for Christmas because they were well constructed and lasted a long time and had utility to the recipient.

So despite the gloom and doom, things might be starting to trend the right way. We just need to fall back on our better judgement. Small vignette.

As long as the foxes guard the hen houses nothing is going to change. How can we have any hope for improvement when the same dirty producers direct the play? Transperancy? What’s that? A new word of which nobody in government knows the definition.