Posted on 02/07/2009 12:34:10 PM PST by NormsRevenge
WILLIAMSBURG, Virginia (Reuters) Treasury Secretary Timothy Geithner on Saturday told lawmakers that financial institutions that receive government assistance will have to make loan modifications and meet other new standards, according to Democratic sources.
Geithner, during a briefing with House of Representatives' Democrats, was asked about a New York Times report that the Obama administration would not require banks to increase their lending as part of revamped government effort to restore stability to the financial industry.
According to the sources, who asked not to be identified, Geithner said: "We are not doing what they wrote ... Institutions that get assistance will have to participate in loan modifications and meet other standards that we set."
"Public assistance is a privilege, not a right," the sources said Geithner told lawmakers.
The sources said Geithner told the lawmakers that fixing the banking system. "It is going to take time for it to work but it will work," he said, according to the sources.
Geithner on Monday will unveil the Obama administration's plans for dealing with an ongoing credit crisis and outline how it will spend what remains in a $700 billion financial bailout fund approved by Congress in the fall.
The Democratic sources did not indicate that Geithner provided any specifics on that plan during his meeting with House Democrats attending an annual retreat. Besides answering questions on how the administration will battle the crisis, the session was a chance for lawmakers to get an opportunity to get to know the new Treasury secretary better, source said.
(Excerpt) Read more at news.yahoo.com ...
“Public assistance is a privilege, not a right,” the sources said Geithner told lawmakers.
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.. and thievery and tax avoidance is no longer a crime.. rather a badge of honor for Dems.
How about if Geithner adheres to Gubmint standards, such as paying taxes?
If they lower the loan balance on any loans it would be theft from everyone that has ever honered their loan agreements!
If they don’t make the payments throw them out in the street, no exceptions!
As Curly would say...”boy, the noyve of this guy”
Too bad that doesn't also apply to "conventional" (as opposed to "corporate") welfare, too. Imagine what standards could be set. Let's see: 1) Sell your t.v.; 2) Stop drinking; 3) No more children as long as you're on welfare; 4) Get a high school diploma; 5) etc.
Regards,
Forcing banks to make loans they didn’t want to is a big part of how we got here.
Now in the mist of the resulting storm they want to do more of the same...
Brilliant politicians we have...
Whatever Geitner the tax cheat does..... he has zero credibility.
I don’t think Geithner is dumb. His tax cheating was deliberate, and so is this economic destruction. Destroy the economy, render people dependent on you, and you have established a nice, cozy dictatorship.
These guys know what they are doing.
We are extending public assistance to people who got in over their heads on their home purchases, in the form of higher rates and fees for everyone else who will get a mortgage in the future, and in the form of destroyed bank shareholder equity when these loans are jammed down.
And working, busting your a$$ to make something for yourself and your family is your patriotic duty so when you do succeed we can steal your money to support those who we deem fit.
I swear, I ready to flip out, seriously.
Yes. It’s the return of King John. We thought the illegality of ex post facto legislation went out with Magna Carta.
Good...I want my mortgage rate to be reset to 0%. < /sarcasm>
Why stop there? I want a mortgage at a rate of -5%. They can send me checks.
That’s always been my problem...just never ambitious enough!!
Well now....Can I petition Countrywide to lower my mortgage to 4%?
Stop paying, but stay and exercise your "squatter's rights" (thanks to Marcy Kaptor for that), go out and grab the sports car you've always wanted but couldn't afford because of that damn mortgage, and a 52" LCD for every room. Then, when foreclosure proceedings begin--"modify" the loan to fit your new lifestyle. Paying 7% or full payments crimped your style? Have Geithner reduce it to 4% and reduce the principal. Still not enough to accommodate your new Las Vegas expenditures? Declare bankruptcy and have the judge reduce the terms even more! Sick of working so hard in your job to begin with? Reduce your hours, and let Obama's "tax credit" fill the difference.
Funny, huh? Unfortunately it is REALITY with these new folks in power. Does anyone think America can remain an economic power on this planet under these circumstances? Should I just teach my kids Mandarin and prepare to move to Singapore?
Yep...3rd world country....and the underground economy is going to be ballooning....people do NOT want to pay taxes when they see corruption....Russia was there...did that.
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