Community Reinvestment Act Blamed for Bailout Crisis The following press release was received from Jim Tobin, president of Taxpayers United of Americ

Community Reinvestment Act Blamed for Bailout Crisis

The following press release was received from Jim Tobin, president of Taxpayers United of America:

WALL STREET BAILOUT DEFEAT IN HOUSE A BIG WIN FOR U.S. TAXPAYERS

The defeat in the U.S. House of Representatives of the $700 billion
bailout for Wall Street and big banks is a big win for U.S. taxpayers,
said the President of Taxpayers United of America (TUA).

“The federal government helped create this mess with its incompetent
regulatory intervention in the banking industry,” said Jim Tobin, TUA
President. “The passage of the Community Reinvestment Act, which
literally forced financial institutions to give loans to applicants who
had no hope paying the loans back, was a major factor in crippling the
banks.”

“The members of the U.S. House showed courage and good judgment when
they voted against this obscene bailout. Now the market will take over
and you will see healthy banks taking over insolvent banks rather than
saddling taxpayers with an additional, back-breaking debt of $700 billion.”

“Executives who make dumb decisions should pay dearly for their
incompetence. Our economic system is the most dynamic on earth because
it rewards success and punishes failure. This failed bailout bill would
have rewarded incompetence on the backs of U.S. taxpayers.”

“The consequences of this bailout bill very likely would have been
worse than the dire events predicted by its sponsors. The U.S. economy
is basically healthy, and can handle these bank failures and liquidity
problems without any more incompetent intervention by politicians and
bank lobbyists.”

According to Tobin, the law was originally passed in 1977 under President Jimmy Carter. It was strengthened under President Bill Clinton in the late 1990’s. Of course, in the late 1990’s Republicans controlled Congress.


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