In mid-March, the administration proposed that toxic assets could and would be safely removed from banks balance sheets. We were skeptical, and the the PPIP now seems to have slipped into irrelevance (loans; securities). But the administration still put an impressive effort into persuading independent analysts, and broader public opinion, that they should do something clearly beneficial for banks. This was “all hands on deck,” and it definitely had an impact on the debate, at least for a while.
Now, the administration’s major remaining initiative is its version of a Financial Product Safety Commission - something that would be clearly beneficial for the public. And the skepticism – and outright opposition – comes from the banking sector.
How does the administration’s effort compare, then vs. now? Continue reading