(Community Matters) New York Senator Charles Schumber, “I have told him [Paulson]… we need changes related to housing, we need to put the taxpayer first ahead of bondholders, shareholders.”
I sent a note on Friday to Obama economic advisor Jason Furman saying the same about taxpayers first. My note about requiring banks to give taxpayers an appropriate amount of equity (warrants) to ensure we’d have the majority of upside in this bailout as well as only purchasing the debt at an appropriate discount. These are our only hope in coming out whole, quite possibly even a gain - assuming this bailout is even enough.
Intuitively, I don’t know that I’d mix taxpayer bankruptcy law revisioin or foreclosure bailouts with this legislation, but I can’t help admiring Democrats in Congress for insisting.
