Site for Free Markets and Free People

Wednesday, February 25, 2009

John Kerry's "Idiotic" Proposal

There are so many over-the-top ridiculous proposals these days coming from the Democrats that it's hard to keep track. John Kerry's latest is a real doozy; it relates to marketing and corporate events at banks that accepted TARP funds (by choice or by force). From the WSJ:

"Kerry's TARP Taxpayer Protection and Corporate Responsibility Act," the Senator's press release announced, "would prevent any recipient of TARP funds from hosting, sponsoring, or paying for conferences, holiday parties and entertainment events." Penalties would include fines and forced reimbursement of TARP funds. A bank could still throw a party for customers, provided it gets a "waiver" from the Treasury Secretary, who has 30 days to issue his golf and chardonnay diktat.

The WSJ also notes, as I've repeatedly asserted, that Northern Trust, forced to accept TARP funds by the government, would gladly pay it back immediately if the terms weren't so onerous to do so. The proposal is so absurd on so many levels. Maybe the government should also outlaw lunch breaks, days off, different pay for tellers versus executives and advertising altogether. Maybe that will get the banks to be more successful sooner.

Dems are complaining for Northern Trust to pay a portion of the TARP funds back. With a TCE/Assets ratio of a higher-than-average 8.6%, I am guessing that NT would love to do so.