The University of Texas at Austin
  • LBJ Chair talks about the state of financial institutions

    By Robin Gerrow
    Published: Feb. 24, 2009

    As part of its $700-billion bank bailout, the U.S. government is injecting $45 billion of taxpayers’ cash into each of the two most impaired institutions in the elephantine herd, Bank of America and Citigroup. According to James K. Galbraith, an economic policy expert at the University of Texas, stuffing banks with money just enables incumbent management to hang on and enables current holders of bank stocks to pretend they still have value. Galbraith says the bailed-out banks should be declared insolvent and taken over by the FDIC to be restructured or split up.

    Los Angeles Times

    We already own the banks- shouldn’t we run them?

    Feb. 19,0,2528271.column?track=rss

    • Quote 2
      John Campbell said on Jan. 12, 2011 at 1:21 p.m.
      Owning the banks is one thing; running them another. While it is fair to level a degree of accusation at the management, government always has to take its fair share of blame. Unfortuantely the latter rarely admits to any mistakes! Successful banks contribute vast amounts of tax and therefore we have to be a trifle indulgent towards them - as galling as that is.
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