Congress to Stop Bank Bailout Plan?
M. Baily & C. Schultze, The Brookings Institution | January 15, 2009
The US Congress is critical of the way money from the Trouble Asset Relief Program has been used, and adds that the remaining amount should be made conditional on more loans being granted. ++ However, analysts argue that as the financial crisis was caused by a liquidity crisis due to mortgage losses, loan provision will remain depressed for some time. ++ While Congress’ goal of directly helping consumers and business is a noble one, its primary focus should be bank recapitalization: the Program should thus be approved.
