Bailout watch: Banks ‘pleading’ for federal help

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It’s happening -- the secret bailout talks I warned you about.

Banks are pleading their case in Washington. The headline at Calculated Risk is ‘Banks Plead for Bailout,’ linking to this Wall Street Journal story: ‘The banking industry ... is urgently shopping proposals to Congress and the Bush administration that could shift some of the risk for troubled loans to the federal government.

More:’One proposal, advanced by officials at Credit Suisse Group, would expand the scope of loans guaranteed by the Federal Housing Administration. The proposal would let the FHA guarantee mortgage refinancings by some delinquent borrowers.’

This I would define as a U.S. taxpayer bailout for the banks, oddly enough being championed by a Swiss bank.

The bloviation part: I have a silly question that may strike the globalists in the crowd as nationalistic, but I will ask it anyway: Let’s say you are a member of the United States Congress, the one in Washington, and you represent people in one of the 50 United States. Let’s say, just for purposes of argument, that your congressional district does not include Zurich, Switzerland. Now let’s say the lobbyist representing Zurich-based Credit Suisse wants to talk with you about expanding the scope of loans guaranteed by the FHA. Do you really think this is a conversation your bosses (the residents of your district) want you to have? Why on earth wouldn’t you politely inform the lobbyist to hurry his nice suit to Reagan National, and get on the next plane to the Bundeshaus and make his case to the Swiss Federal Council? I bet they’ve got piles and piles of money.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo credit: Treasury Secretary Henry M. Paulson Jr. and friends, via the Associated Press