Image via WikipediaIn Rupert Murdoch's rag, Wall St. Journal, there is a great article that blasts the repukes and dispels some Myths that are going around about the Banks. Click the title to read the article. Kenneth Lewis, chairman, chief executive officer and president of Bank of America starts off by saying this:
The story of our economic crisis mirrors every great market bubble in history. Clearly, banks were key participants, but they were not alone. Mortgage lenders, borrowers, regulators, policy makers, appraisers, rating agencies, investors and investment bankers all played a role in pushing economic excesses forward. The institutions that gave in completely to the frenzy are no longer with us. Those that balanced the need to compete with the need to lend prudently survive today and are helping to stabilize the system.
He then lists the myths he wants to dispel by saying that yes there have been some problems with lending but that things are better. That was the first myth he wanted to do away with.
Another one he says that I think is important was this about the so called TARP:
- The Troubled Asset Relief Program (TARP) hasn't worked. Not true. Last October, when the TARP was enacted, systemic risk threatened our entire financial system and economy. The point of the program was to stabilize surviving banks, prevent a total meltdown, and enable banks to lend more. The TARP and other government programs have worked, and banks are making more loans as a result.
He also goes on to say he thinks that the Recovery plan the President has enacted is working and will work but we have to give it time. This is what he says about that and some other things:
First, our industry must continue to work in partnership with the government to solve our toughest problems. Congress and the administration have already taken several very positive steps. The Fed is providing sufficient liquidity and has helped lower mortgage rates. The $787 billion stimulus package will help boost economic activity. The Term Asset-Backed Securities Loan Facility (TALF) will help liquefy the credit markets. And the administration's housing and foreclosure relief plan will be very helpful to both homeowners and banks as we work to stabilize housing markets across the country.
All in all it is a great article and is a good push back to the "its not working" and to the mantra we have been hearing from the media that Pres. Obama has not done anything to help the bankers and the financial situation. Well, Kenneth Lewis seems to think he is.
There was also an article today from Laura Tyson regarding Obamanomics that was very good. If you see it, its worth a read too.