Fire Sale of bank assets will hurt taxpayers

Statement of SEIU Secretary-Treasurer Anna Burger on Secretary Geithner's latest TALF proposal

Washington, DC --Treasury Secretary Geithner's plan to invite private equity and hedge fund investors to a fire sale of bank assets is a return to the very same policies and practices that triggered the financial crisis in the first place.

Secretary Geithner's proposal for the Term Asset-Backed Securities Loan Facility (TALF) would enable private equity firms and hedge funds to buy up higher quality loan securitizations, including auto, consumer, student and small business loans. The Federal government would provide low-cost financing for up to 95% of the purchase price, with private firms putting down as little as 5% and the securitizations as collateral. The hope is then to expand this proposal to include toxic mortgage-backed securities.

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h/t Greg Bacon