N.Y. governor wants a subprime-bailout fund

Discussion in 'Economics' started by ASusilovic, Nov 8, 2007.

  1. NEW YORK (MarketWatch) -- New York Gov. Eliot Spitzer said Thursday that he wants mortgage lenders and the federal government to create a fund that will help stabilize the subprime home-lending market.
    Details of the proposed fund were sparse, but the governor compared its use to that of the federal government's injection of cash into the credit markets through discount-rate cuts, creating liquidity and buttressing investor confidence.
    "The issue of subprime lending is something we care about very much," Spitzer said at a press conference, adding that the "dramatic increase" in delinquency rates on subprime loans is a matter of economic security.

    pitzer's proposal was announced in connection with a package of initiatives designed to help subprime borrowers keep their homes. The initiatives include a loan-modification program to bring down monthly payments; a $2 million matching-grant program for counseling and advocacy groups to help homeowners facing delinquency; and proposing legislation that would make lenders and brokers more accountable.
    "We need this to happen. ... Otherwise the trend line will continue to lead to massive write-downs and hurt [lender] portfolios," he said.

  2. He is not for real right? Thought he is a smart man. I guess once you are into politic, you will do what make you look good, instead of what is bring right.

    They who get into this mess needs to take responsibility of their own actions.

    I don't see they create a bailout fund for those of us who blow up their trading accounts.
  3. Spitzer is recommending that to protect the solvency and bonuses of NYC financial institutions.