Obama aide: No fixed rules on too big to fail

[cal04]

http://news.yahoo.com/s/nm/20080918/pl_nm/usa_politics_obama_financial_dc

There are no hard and fast rules to determine which financial firms are "too big to fail," a senior adviser to Democratic White House hopeful Barack Obama said on Wednesday.

Jason Furman, a top economic aide to Obama, told Reuters that taxpayer-funded bailouts are always a last resort, but decisions must be made on a case-by-case basis and take into account whether the failure of a firm would cause significant harm to the financial system and the economy.

"Every situation is unique. It's impossible to develop hard and fast rules, but you want to do the most you possibly can to protect taxpayers while ensuring that the economy remains strong," Furman said in a telephone interview.

(snip)
"While we do not know all the details of this arrangement, the Fed must ensure that the plan protects the families that count on insurance," Obama said. "It must not bail out the shareholders or management of AIG."

[abumbyanyothername]

1. "It must not bail out the shareholders or management of AIG."

I think it's time to start adding creditors to that list.

But if JPM goes under, who will the USGOV borrower from?

[Cha]

2. Rec'd!

:kick:

[Newshues]

3. looking for a McCain pounce

"Every situation is unique. It's impossible to develop hard and fast rules, but you want to do the most you possibly can to protect taxpayers while ensuring that the economy remains strong," Furman said in a telephone interview.


If Obama's top economic advisor agrees with McCain that the economy is strong ( if it wasn't then there is no "remains strong" ) McCain's team of crack propagandists should pounce on it.....well, if they had a brain they would. Poor choice of words.