Scott Ott
Barney Frank bill would revoke bailouts, reward competence
By: Scott Ott
Examiner Columnist
March 16, 2009
News fairly unbalanced. We report. You decipher.
Just a day after Rep. Barney Frank excoriated federal bailout recipient AIG for "rewarding incompetence" by paying out $165 million in bonuses to its executives in a year when the insurance giant nearly collapsed, the Massachusetts Democrat introduced a bill rescinding all bailouts for failing firms or for homeowners in foreclosure.
"When I said AIG bonuses reward incompetence, it suddenly occurred to me that these bailouts do the same thing," said Rep. Frank. "Instead of giving hundreds of billions to the likes of AIG and to people who bought too much house, we're going to invest in companies and individuals who have managed their money well. From now on, we are going to reward competence."
Rep. Frank said his plan has two simple steps:
* Immediately recover the bailout money already disbursed.
* Loan it to companies and individuals who have played by the rules, invested prudently, and didn't spend beyond their means.
"We want that money back," said Rep. Frank. "If I have to personally auction off every Lear Jet, Herman Miller chair, and Cuban cigar in the offices of every firm that got a federal bailout, we're getting that cash back and then put it in the care of people who know how to handle money."
The lawmaker also said he plans to "go after whoever was supposed to be keeping an eye on Fannie Mae and Freddie Mac, but who ignored history and economics in a vain attempt to implement their Utopian ideology about home ownership for everyone regardless of income."
"It's unconscionable that most of our economy has collapsed, and yet nobody but Bernie Madoff has been led away in handcuffs," said Rep. Frank. "I want to see perp walks. Let's name them and shame them."
Examiner columnist Scott Ott is editor in chief of ScrappleFace.com, the family-friendly news satire site, and anchor of ScrappleFace Network News (SNN), seen on YouTube.
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