April 11 hearing the news at present, Obama has been initially completed the Government of the banking sector stress testing. On the other hand, the United States government in the banking industry executives and non-performing assets to repay the loan on such issues as the sale of the practice, but showed an increasingly strong dissatisfaction.
The end of this week, five teams with the Council of Economic Advisers after the meeting, Obama said that the dawn of the U.S. economy has emerged. But at the same time, the financial services industry in the next step the issue of relief measures, the United States Government and the differences between the banking industry has become increasingly evident. Such differences have been manifested in various aspects.
First of all, the financial condition of many banks have already expressed willingness to repay government loans, but this will lead to high costs and also make them indecisive on this issue. As early as two weeks ago, JP Morgan Chase Bank CEO Jamie Dimon and other executives of two big banks, and Obama in the U.S. Treasury Secretary Timothy Geithner and the meeting referred to repay the loans. In addition, the majority of the banks are government loans that the U.S. government to repay the loan made by the issue of imposition of the restriction is unreasonable.
Secondly, Obama weak government hopes that the issue of disclosure of bank assets in the amount of detailed issues such as housing loans can be more rapid. However, because this deal will be a direct result of a profit report an increase in losses, most banks on this issue are very negative.
Finally, a number of banking executives are worried that the U.S. government will take the opportunity to stress tests to adjust their management. Before that, the U.S. government has been forced to this way of General Motors executives to step down.
On the other hand, the U.S. government has recognized the next few weeks for the banking industry and the importance of the relief plan. At present, the U.S. government has been in gestation for next steps. Obama said this week: "The United States government will take additional action." However, when the Government and the tension between the banking sector growing at the same time, the U.S. government can use the funds to rescue the market has continued to decline. According to the U.S. Treasury Department officials said the situation, the Government rescue package will make use of funds only the last remaining 134 billion U.S. dollars, but the next few weeks, both the banking industry, the automobile industry or the insurance industry, the Government may new applications for assistance. This gap between supply and demand continues to increase, but also government and enterprises will lead to further deterioration of relations.
Apr. 11, 2009
