Senator Bond believes the federal government has made a mess out of the bank bailout plan … he proposes a measure to clean it up. He unveiled his American Credit Cleanup Plan on the floor of the U-S Senate, saying we need to cleanse the system of toxic assets.
Bond says the current plan fails to provide clarity and fails to solve the problem, using piece-meal and ad-hoc plans that further deteriorate the public’s confidence in the banking system.
He says putting limits on bank CEOs isn’t working and financial institutions continue to struggle. Now is the time to pull out the bazooka.
He’s proposing to remove toxic assets from banks free from political interference so that the system is transparent. The government should temporarily control the banks with conservatorship and the FDIC has the authority to do just that, he says, but for that to work, the government must be able to clean the system without micromanagement from the administration and Congress.
Bond says the next step would be for the government to separate good assets from bad assets and hold the bad assets until market conditions improve.
He says there are other options, one, to keep propping up financial institutions as has been happening over several months, most recently with A-I-G, and watch them continue to struggle. And two, to do nothing, which would surelty result in total collapse.