I have been reading an article in the WSJ concerning the control of the banks by Stuart Varney, host on the Fox Business channel. This article deals with the TARP (Troubled Asset Relief Program) program that has poured money into many banks, some of which did not want it and desire to return it. In fact, this past week (April 1st) four small banks in Louisiana, New York, Indiana and California have returned 340 million dollars. In most cases, the administration discourages or refuses to accept the returned money. Why? Mr. Varney's answer: "The government wants to control the banks, just as it now controls GM and Chrysler, and will surely control the health industry in the not-too-distant future. Keeping them TARP- stuffed is the key to control... The White House wants to tell (the banks) what to do. Control. Direct. Command. "
Mr. Varney goes on to say, "If the banks are forced to keep TARP cash- which was often forced on them in the first place - the Obama team can work its will on the financial system to unprecedented degree. That's what's happening right now."
One bank is begging to be allowed to return the money, but the administration says, no. The bank is too prominent . The bank is threatened with "adverse" consequences if its chairman persists. "That's politics talking, not economics," says Varney.
"Think about it: If Rick Wagoner can be fired and compact cars can be mandated, why can't a bank with a vault full of TARP money be told where to lend? And since politics drives this administration, why can't special loans and terms be offered to favored constituents, favored industries, or even favored regions? Our prosperity has never been based on the political allocation of credit - until now."
Mr. Varey continues to point our that the Pay for Performance Act, which has just passed by the House, is an outstanding example of class warfare. He says he is an Englishman, and he should know.
Many of the financial institutions are guilty of gross misconduct in their handling of other people's money. We have seen extensive immoral conduct, lust and greed. Where money is available, there will be those who will want to get part of it. However, if there is no moral restraints, all the laws we pass will hardly control the misconduct we have seen in the past few months. Certainly, controls are needed, but let us not over react to the point that we allow government to control our financial institutions, our industries, our health industry and our personal lives. Freedom is becoming more and more a very strange word.