The Treasury announced this morning that 10 of our largest banks will be allowed to repay $68 billion of TARP bailout money. These banks can put on their cap and gowns, graduate, and begin to focus more on the future. Former Treasury Secretary, Henry Paulson, said that this is the "beginning of the unwinding". This will lessen fears that the Federal government wants to own some banks. There are other programs to gradually unwind, but this is an encouraging step.
Secondly, U.S. Supreme Court Justice, Ruth Bader Ginsburg, issued a stay that, at least temporarily, stops Chrysler's sale to Fiat. Although the stay came in response to a group of Indiana pension funds, the court may also be responding to the strange usurpation of bond holders rights under bankruptcy laws.
Even if this doesn't proceed too far it is, at least, a high level statement that we are a nation of laws and must respect contracts.
No comments:
Post a Comment