Leah Valencia, University of New Mexico-Talk Radio News Service

U.S. Treasury Department Director for Consumer Protection Peggy Twohig said that establishing a far reaching financial regulatory agency could create a system of checks and balances for financial institutions, thus ensuring the strength of the U.S. economy.

“An agency would create uniform protection for consumers and make a level playing field for all types of financial services,” she said.

While discussing the Obama administration’s proposed Consumer Financial Protection Agency at the New American Foundation Friday, Twohig said it is necessary for all financial institutions to learn a sense of responsibility for the consumer by following base regulations

“The administration has supported that,” she said. “Part of the legislative proposal is for federal rules to be a floor not a ceiling that would apply to everyone.”

Twohig said there was not acceptable oversight of banking sectors in the past, adding that this caused a race to the bottom, where nonbank lenders offering aggressive products often steered consumers to unacceptable loans. As a result, banks who wanted to compete felt pressured and began to loan irresponsibly. Twohig said the proposed agency will prevent such an occurrence in the future.

“We need basic standards that will protect all consumers,” she said. “This will help the responsible players… who want to offer straightforward transparent products for consumers.”

Federal Reserve Chairman Ben Bernanke says it is acceptable for banks to be loaning to individuals with good credit. (0:27)

 

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By Michael Combier-Talk Radio News Service

Former Federal Reserve Chairman Alan Greenspan discussed the possibility of creating new banks, free of any toxic assets. These new institutions would provide less risks than the institutions which have sought federal loans and that still remain a threat to the U.S. economy. (1:22)

 

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Treasury Secretary Timothy Geithner briefly reflects on the challenges that small businesses which have been reasonable with their borrowing still face. He separate their problems into two categories: those who were unlucky with their choice of bank, and those who are in an industry that typically suffers in times of recession. (0:28)

 

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Jonathan Bronsetin, Talk Radio News Service

Out of the International Monetary Fund’s, Spring 2009 meeting came a simple, but poignant message: the world is still in a recession. But the key to any recovery, according to the IMF, relied upon the restoration of the health of the banking system.

“You never recover before you completed the cleaning up of the balance sheet of the financial sector,” said Dominique Strauss-Kahn, Chairman of the IMF.

Strauss-Kahn believes that any nation can postpone cleaning the banks balance sheet, but this will only postpone a full-fledged recovery.

“I don’t underestimate the difficulties of the task, but the fact that it is difficult does not make it less necessary,” said Strauss-Kahn.

Additionally, Strauss-Kahn applauded the efforts of governments to recognize and quickly deal with this recession through the implementation of successful economic stimulus’s. He believed that the stimulus had a 1/3 greater affect because it occurred in a coordinated fashion.

Strauss-Kahn bluntly predicted. “Our [the IMF] belief is that the crisis is far from over, and there are long months of economic distress in front of us.”

Talk Radio News Service, Victoria Jones, interviews Ann Coulter at the 2009 Conservative Political Action Conference in Washington, D.C. Coulter talks about President Obama’s new Iraq war strategy saying that President Obama “seems to be following Bush policy on terrorism.” Coulter also talks about how the government has to do something with the banks and that forcing banks to give loans not based on normal business practices is what’s putting the economy in a financial crisis. (04:45)

 

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At a press conference today, Secretary of the Treasury Henry Paulson said that although the financial situation is still fragile, the steps taken have helped America’s system. He stated that the Treasury had acted quickly and in coordination with other systems around the world, but that the market turmoil is not likely to end until the housing crisis is over.

Paulson said that the primary focus must be on recovery and repair, as he stressed the importance of banks continuing to lend. He stated that by the time Congress approved the bailout money, the Treasury realized it was too late and would take too long to invest the money as it had originally intended. Instead, they decided the money would best be used to strengthen liquidity in banks, not housing.

In conclusion, Paulson described the stability of the financial system as their highest priority, He emphasized three steps to accomplishing this goal. First they will seek to reinforce the stability of the financial system; second, seek to support important non-bank financial institutions; third, continue to o explore ways to reduce foreclosures.