That’s what many banks are now saying to the government’s proffer of ‘bailout’ funds. Mind you, these are not the large banks drowning in sub-prime debt. These are smaller, solvent banks with clean balance sheets that don’t want or need the funds. And why? As Victoria McGrane writes in The Politico:
Some smaller banks are dropping out of the voluntary program designed to jumpstart lending, created with $250 billion of the Wall Street rescue, because they fear angry policymakers plan to slap them with unanticipated new rules and requirements.
The development signals the policy fights to come as Democrats seek balance with industry over demands for more regulation, even as the financial system needs more government help.
Democrats have spent the last two weeks pressing for tough new restrictions on financial institutions that get some of the initial $700 billion bailout money. But industry officials warn that banks’ fears that policymakers will slap them with onerous retroactive rules could chill participation in the Capital Purchase Program, designed to help healthy banks increase lending.
Read it all.
And House Democrats on Wednesday passed a bill that would put TARP’s restrictive regulations in statutory form. Leading the charge was none other than Barney Frank, one of principal architects of the sub-prime mess and mortgage meltdown.
Accepting anything from the government – even in the best of times – carries an element of risk. Like dealing with Satan or the mob, once you accept the favor, they own you. And not even the mob has the government’s power over your life.
But Barney Frank does.
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