Sunday, April 18, 2010

Geithner Says No More Bailouts Under Reform

On Meet the Press, David Gregory asks Timothy Geithner: Could these bank bailouts have been prevented? Geithner says yes.
Of course. Here is a very simple way the the bailouts could've been prevented: Banks should've been required to seek proof of income on home loans. That way, Wall Street wouldn't have had any subprime loans to turn into fancy derivatives.
Geithner says if a bank gets into a position where it's too big to fail, it will be dismembered.

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