Astani Enterprises Takes Issue With Current Government Policy.
It's Time for the FDIC to Stop Trashing American Jobs
WASHINGTON, June 9, 2011 /PRNewswire-USNewswire/ -- In a powerful new ad campaign launched this week, Astani Enterprises points out the perverse incentive that the Federal Deposit Insurance Company (FDIC) has created for the hedge funds tasked with managing the assets of failed banks. The more seized assets a hedge fund keeps on its books, the more taxpayer dollars the hedge funds receive in "management fees." While these hedge funds profit, more Americans are thrown out of work, more construction projects are junked, and communities across America continue to struggle.
With almost 20 million people unemployed in our country (construction unemployment 40% in LA County alone!), many Americans wake up every day and ask, "how did this happen?" Wall Street and the Federal Government told us our country's economy and financial systems were too big to fail. But they did fail and some of the biggest banking institutions in our country crumbled. The Federal Government's troubled assets bailout totaled more than $700 billion, with much of the money going to some of the largest banking institutions in the country. But many banks failed anyway. Now, the FDIC is allowing hedge funds to buy the assets of failed banks – giving these favored hedge funds the ability to turn quick profits while enjoying perks like zero percent government loans.
In the past, the government has wisely kept hedge funds and other private investor groups from buying troubled banks, mainly out of fear that they would try to turn the bank around and sell it for a quick profit. As more banks fail in our struggling economy, the FDIC has put those fears aside. The result: hedge funds prosper while countless jobs in communities across the country end up in the trash. Congressional hearings are expected in the next few weeks. Ms. Bair's testimony will be welcome.
The ad campaign thus far has run in The Weekly Standard and The Washington Post. See the ad here: http://www.washingtonpost.com/rw/WashingtonPost/Content/Epaper/2011-06-08/Ax17.pdf
The systemic nature Astani references is well detailed in prominent publications nationwide.
CNBC, "Should Hedge Funds Be Able to Take Over Failed Banks?"
Wall Street Journal, "Bankruptcy Court Is Latest Battleground for Traders," http://topics.wsj.com/article/SB10001424052748703309704575413643530508422.html?mod=WSJ_article_related
Bloomberg, "FDIC Selling Corus Loans Means Betting on Failed Condo Projects," http://www.bloomberg.com/news/2010-07-19/fdic-selling-corus-loans-to-starwood-means-betting-on-failed-condominiums.html
Contact: David Bass, Raptor Strategies
(202) 423 – 1988
SOURCE Astani Enterprises