Bennett worries about fate
Sen. Bob Bennett told Treasury Secretary Timothy Geithner on Thursday that the Obama administration is making a horrible mistake with its new financial-system-overhaul proposals that would kill industrial loan companies.
ILCs are financial institutions that make loans but may be owned by non-financial companies — such as retailers or car manufacturers or stock brokerages. Utah is one of just seven states that charter them, and most large ILCs are chartered in Utah.
"Right now, one of the problems we have with the economy is that there is not enough credit, and yet the administration's proposal would kill ILCs, a major source of credit where there has been no difficulty with respect to the financial crisis," Bennett told Geithner during a Senate Banking Committee hearing.
"There is not a single ILC that contributed to the crisis. There is not a single ILC that went down," Bennett said.
Still, he said, the administration's proposal "is a destruction of the industry. We're going to cancel the ILCs' charter. We're going to cancel the industry as a whole."
Geithner told Bennett the administration believes it is essential that all institutions that accept deposits and make loans — thus essentially acting like banks — should face the same basic standards.
"We don't want to allow people to shop for less-vigorous regimes with less-vigorous standards," which led in part to the financial crisis with thrifts and banks, Geithner said.
But Bennett said, "This is overkill. There is not a single ILC that contributed to the crisis."
Geithner conceded, "This is a very difficult issue, and it's difficult to know what the right course is here." He said the Treasury Department would work with Bennett to address his concerns.
E-MAIL: lee@desnews.com
Recent comments
Anyone with a comment regarding Mr Bennetts status as a...
Artz | June 22, 2009 at 3:40 p.m.
You know you're in trouble when Tim Geithner wins the argument simply...
Phoenix Roberts | June 22, 2009 at 2:36 p.m.
Time for Bennett to retire -- too old, powerless and irrelevant.
tired and OLD | June 22, 2009 at 11:09 a.m.
- Holiday television program listings 1:02 a.m.
- Williams, Rose celebrate by playing 12:46 a.m.
- Utes to get tested by Illinois 12:40 a.m.
- Cougs to host Weber St. 12:39 a.m.
- Efforts to save a life praised 12:29 a.m.
- Settle fights, set tone of marriage 12:28 a.m.
- Clearfield balking at UTA plan 12:26 a.m.
- New administration bldg for Davis 12:26 a.m.
- Gallery: Thanksgiving in Utah 12:14 a.m.
- National news briefs 12:12 a.m.
- Man trapped in Nutty Putty cave dies
- Rivalry has had some 'turkeys'
- Holiday television program listings
- Highland players make special friend
- Salt Lake City woman shot
- Matt Reynolds vs. Koa Misi
- Temple Square to use LEDs
- Provo star leads Bulldogs to win
- Missions teach players perseverance
- Jazz part of new holiday tradition?
- BYU would like friendlier rivalry
262 - Protests against Phoenix LDS temple
211 - RSL wins MLS Cup on penalty kicks
202 - Bronco, Kyle rubber match
139 - Thunder rolls by Jazz
136 - Letters: Rushing to judge Palin
133 - Boys basketball rankings
117 - Editorial: Poor welcome for Palin
112 - Hall, Johnson matchup key
102 - Man trapped in Nutty Putty cave dies
98
Maybe someone else should screen posts. Where do I apply???
So the one key play we should remember is a blown coverage against a mediocre...
Alaska Law claims that Sarah Palin had to leave office because she had to pay...
To RE: Bill Gronenberg: Actually it took a war to accomplish that amendment...
I don't like the way our government is run either, but to suggest that its...
In Gods eyes its only EFFLUENCE!
I'd like to think Utah should have a chance in this game, but after seeing...
Honestly, who cares anything about Utah or the Utes.
BYU reloads, the U attempts to rebuild. Utah may finish the year with 4...
I had a few classes with John at BYU. I can't stop grieving for his wife. I...


