A Letter Against the Bailout Plan

Here's a link to a letter from BB&T's chairman to Congress regarding their bailout plan. He doesn't like it. His bank doesn't need it.

For John Allison, the high-risk rollers on Wall Street are getting too much of the ear of Congress and having too much say in resolving the financial nightmare that they created.

That's why Allison, the chairman and chief executive of BB&T Corp., submitted a 14-point letter Tuesday to all 535 members of Congress with a simple message regarding the proposed $700 billion bailout.

"There is no panic on Main Street and in sound financial institutions," he wrote. "The problems are in high-risk financial institutions and on Wall Street."

He said that it is important that "Congress hear from the well-run financial institutions, as most of the concerns have been focused on the problem companies. It is extremely important that the bailout not damage well-run companies." Allison's opinion is seconded by local community-bank officials and community-bank trade groups.



http://media.gatewaync.com/wsj/pdfs/2008/09/allison.pdf

 

You can be the smartest and most risk adverse banker or investor in the world. If you have a counterparty that goes belly up and they owe you money you basically have nothing more than an unsecured debt claim against them in bankruptcy court.

 

Man, that letter is a breath of fresh air. Coming from a good solid company, it should carry more weight than my rants at my representatives.

 

Finally we have a honest corporate man in this country.

 

The high rollers on wall street didn't create the mess. The democrats wanted these toxic loans to be made and they set up fnm and fre to back them with AAA credit.

Pardon wall street for doing EXACTLY what the liberals in congress wanted done.

 

Exactly. So if you gambled and lost, it's your problem. Not mine.

OldTrader

 

Absolutely this was the start of the mess but many others contributed once the ball got rolling.

 

Bailout already underway, check this...

http://www.reuters.com/article/ousiv/idUSTRE48O9B920080925

:eek:

 

There are some sound, risk adverse financial institutions that use financial instruments as a hedge instead of a bet.

If their counter party default, then these sound, risk adverse financial institutions will be in trouble.

We don't know to what extend this credit crisis will extend to, but it is like a forest fire. If we don't take care of it fast, the tiny flame could burn down the whole forest.

Pension_Admin

 

Anyone who dipped their toes in the unregulated CDS market was neither sound nor risk-adverse.

They were friggin' idiots.