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Weakest Bank Has Cheaper Funding Than Berkshire Hathaway


Parsad
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I think this is part of the litany of protests that the public has about TARP.  How can the weakest bank be provided cheaper funding than many other solid institutions, including Berkshire Hathaway?  Make errors in judgement and we'll bail you out.  I agree with the sentiment that when the elephant fall, all the grass around him gets crushed, but I'm not sure why we can't let small institutions fail for their own mistakes.  That's capitalism!  Cheers!

 

http://www.examiner.com/x-7944-Warren-Buffett-Examiner~y2009m7d27-Weakest-bank-has-lower-funding-costs-than-Berkshire-Hathaway

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Unfair to say the least.  BUT, the economy was in freefall when this policy was put forward along with a broad range of confidence restoration mechanisms.  I recall swapping some private emails with a friend many months ago on this subject and noted Buffett hadn't made a big deal out of this.  As time wears on, he may comment more publicly on the unfairness.  As banks recapitalize, the need for TARP will diminish and the playing field needs to be releveled.  I have to agree with re-capitalization of the financials as a necessity, but it rubs me the wrong way on principle.  It's a sorry chapter and a response to wild speculation.  Some tougher alternatives were certainly contemplated by the Obama crowd.

 

-O

 

I think this is part of the litany of protests that the public has about TARP.  How can the weakest bank be provided cheaper funding than many other solid institutions, including Berkshire Hathaway?  Make errors in judgement and we'll bail you out.  I agree with the sentiment that when the elephant fall, all the grass around him gets crushed, but I'm not sure why we can't let small institutions fail for their own mistakes.  That's capitalism!  Cheers!

 

http://www.examiner.com/x-7944-Warren-Buffett-Examiner~y2009m7d27-Weakest-bank-has-lower-funding-costs-than-Berkshire-Hathaway

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