You are hereTitus North's letter is published in the Post-Gazette
Titus North's letter is published in the Post-Gazette
In 1998 Japan injected capital across the board into its major banks without audits or conditions, along the lines of what the Bush administration has announced. Within a year, two of its largest banks failed, ultimately costing the taxpayers tens of billions of dollars.
In 1999 Japan again injected capital into its banks, but this time with strict audits and conditions and with the price of shares obtained by the government reflecting market values. Also, the capital was injected only into banks that needed it. The result was that banks were forced by the audits and conditions to clean up their acts and the taxpayers were eventually repaid.
Why is Congress letting President Bush and Treasury Secretary Henry Paulson call all the shots? Congress needs to insist on immediate audits of financial institutions, market-based prices for all transactions with banks and strict conditions to be imposed on all banks participating in any government rescue program.
TITUS NORTH
Squirrel Hill
The writer is the Green Party candidate for Congress in the 14th District.
