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    Morning Bell: Bank Tax Misses the Real Bailout Deadbeats in Detroit and DC

    Facing rising populist anger over his administration’s billion-dollar bailouts, President Barack Obama proposed a $117 billion tax over the next 12 years on financial companies with assets of more than $50 billion. “We want our money back, and we’re going to get it,” the President said. The President is half … More

    Taxing Banks to Pay for TARP: Just Playing Politics

    It is fun and politically profitable to attack banks and bankers, especially in the wake of a bailout program estimated to have cost American taxpayers some $150 billion. Given this, the plan floated yesterday by the Obama Administration to charge a “fee” (read tax) on financial institutions to cover losses … More

    Bernanke and Regulation: The Perils of Headline Writing

    Interpreting statements of Federal Reserve Chairmen has long been considered a high art form. During Alan Greenspan’s time, journalists and financial analysts made huge efforts to understand his cryptic comments on the economy, with the result that a few sentences could spawn literally pages of analysis designed to “explain” the … More

    Fannie and Freddie: The Sky’s the Limit

    While most of us were at home waiting for Santa and his reindeer to arrive, a gift arrived for mortgage giants Fannie Mae and Freddie Mac, as the Obama Administration lifted caps on how much bailout money they can receive from the U.S. Treasury. The old limits for the firms, … More

    Calling Claude Raines: Study Finds Politics in TARP Bailout

    A late end-of-year entry for the 2009 Claude Raines Award goes to a study just released by two economists at the University of Michigan finding that banks with political connections were more likely to get TARP funds than those without them. “Our results show that political connections play an important … More

    Video: Barney Frank's Permanent TARP

    As early as today, the House is set to approve Rep. Barney Frank’s (D-MA) financial regulation bill intended to prevent future Wall Street bailouts by granting regulators sweeping new powers to control firms deemed “too big to fail.” But as Heritage Senior Research Fellow David John explains below, the Frank … More

    Bankruptcy: A Better Answer to “Too Big to Fail”

    The financial reform bill that is currently before the House would give regulators virtually unlimited power over “too big to fail” financial institutions. Those are large, complex and usually international entities whose failure could cause such a shock to the interconnected financial system that others would be endangered. Under the … More

    Consumer Financial Protection: An Alternative

    Creating a new “Consumer Financial Protection Agency” (CFPA), as proposed in the financial regulation bill now before the House, would raise costs for consumers, reduce the number and type of products available to them, increase the micro-management of financial services firms, and greatly increase the confusion caused by differing and … More

    Mortgage Cramdowns Will Hurt Consumers

    Just as the housing market is showing definite signs that it is stabilizing after a lengthy drop in housing prices, the House of Representatives is about to vote on proposal that would destabilize it once again while also raising the cost of mortgages for future home buyers. The proposal – … More

    TARP: Will This Crony Capitalist Slush Fund Ever Die?

    It’s been used to buy one car company, give another to union allies, punish non-union workers, undermine the bankruptcy code, enrich Wall Street at the expense of Main Street, keep unionized Zombie firms from dying, and generally terrorize the world economy. Now the left in Congress wants to use it … More