Letters to the Editor

Wash Post's Pearlstein: Anyone opposing the bailout is ignorant "Thank God there is a mainstream media out there that actually does reporting and has people who understand things." Glenn Greenwald [2008-10-01]

• John Allison, too

  http://www.bizjournals.com/atlanta/stories/2008/09/22/daily70.html

  http://money.cnn.com/news/newsfeeds/articles/djf500/200809251152DOWJONESDJONLINE000702_FORTUNE5.htm

  John Allison is Chairman and CEO of BB&T, the largest bank in the southeastern US.

  In a letter to Congress dated Tuesday, Allison didn't oppose government action outright. But he suggested changes to Treasury Secretary Henry M. Paulson Jr.'s proposal to inject $700 billion in fusion to liquefy mortgage assets.

  "The government should directly purchase housing assets, not real estate bonds. " ... wrote the chairman ...

  ...

  "There is no panic on Main Street and in sound financial institutions," Allison wrote. "While all financial intermediaries are being impaired by liquidity issues, this is primarily a bailout of poorly run financial companies."

  "It is completely unclear why the government needs or should bail out insurance companies, investment banks, hedge funds and foreign companies," Allison wrote in his letter. "The primary beneficiaries of the proposed rescue are Goldman Sachs (GS) and Morgan Stanley (MS)."

  -- nick
  [Read nick's other letters]
  Permalink Flag Wednesday, October 1, 2008 06:48 PM
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