New Problems emerge in mortgage bailout

by THE WAV GROUP on March 21, 2009

This is the beginning of an article found on Blown Mortgage that frames this discussion quite well….

“Stimulus funds need to be infused into the economy as quickly and efficiently as possible in order to stimulate growth,” said David Williams, leader of Deloittes Financial Advisory Services practice. “However, the legislative process as well as the publics desire for transparency surrounding how stimulus funds are allocated do not bode well for getting stimulus funds into the economy quickly.”

That isnt happening, according to the Wall Street Journal. In fact, the Wall Street Journal reports the largest banks receiving Troubled Asset Relief Program, or TARP, funds actually offered less credit to business and consumer borrowers during February.

The culprit may be the public thirst for transparency.

“The government is trying to walk a tightrope here, to the extent that they publicly disclose how banks are doing in the bailout they further under mine the publics confidence in the banking industry,” said Victor Lund, senior analyst at WAV Group.

 

 

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