skip to main content
skip to newscasts

Friday, March 29, 2024

Public News Service Logo
facebook instagram linkedin reddit youtube twitter
view newscast page
play newscast audioPlay

The latest on the Key Bridge collapse, New York puts forth legislation to get clean energy projects on the grid and Wisconsin and other states join a federal summer food program to help feed kids across the country.

view newscast page
play newscast audioPlay

Republicans float conspiracy theories on the collapse of Baltimore's Key Bridge, South Carolina's congressional elections will use a map ruled unconstitutional, and the Senate schedules an impeachment trial for Homeland Secretary Mayorkas.

view newscast page
play newscast audioPlay

Historic wildfires could create housing and health issues for rural Texans, a Kentucky program helps prison parolees start a new life, and descendants of Nicodemus, Kansas celebrate the Black settlers who journeyed across the 1870s plains seeking self-governance.

Ohio Group: Bank Stress Tests Show Need for Ignored Banking Law

play audio
Play

Monday, May 11, 2009   

Cleveland, Ohio – It’s been on the books for 18 years, but some experts say the recent lack of enforcement of the Prompt Corrective Action Law is costing the government and taxpayers billions of dollars. An effort is underway to draw the attention of Ohio Congressional leaders to the law, which mandates that insolvent or severely under-capitalized institutions regulated by FDIC be taken into receivership.

The stress test results recently released by the government showed that despite federal bailouts, many of the country's largest banks still need more money. Lois Romanoff with the American Friends Service Committee of Northeast Ohio says the situation could have been avoided had policymakers enforced the federal Prompt Corrective Action Law. Instead, she says, the government essentially has let big bankers loose.

"They have a lot of money to pay for whatever they want. They want to be in charge, and they are, and we are suffering mightily from it. It's very frightening that we are still not on the right track."

Romanoff, who serves on the group's Economic Justice Committee, contends that by not taking over insolvent banks, the Bush and Obama administrations violated the law and wasted billions of taxpayer dollars through bailouts. The stress tests found that 10 bank holding companies, including Ohio-based Fifth-Third and Keycorp, will need to raise about $75 billion combined to survive the current recession.

Romanoff says a system already is in place to deal with insolvent banks, and it doesn't require a bailout.

"Banks fail every day in this country. We know how to handle it and we know how to protect investors. The FDIC comes in and does it quietly and efficiently."

A number of organizations, including the American Friends Service Committee, are asking lawmakers to put a stop to big bank bailouts so federal budget priorities can be focused on investing in jobs, health care, education, alternative energy and infrastructure.


get more stories like this via email

more stories
The U.S. Supreme Court heard arguments this week about the popular abortion pill Mifepristone and will weigh in on whether the U.S. Food and Drug Administration was correct in how it can be dosed and prescribed. (Ascannio/Adobe Stock)

Health and Wellness

play sound

Missouri residents are worried about future access to birth control. The latest survey from The Right Time, an initiative based in Missouri…


Social Issues

play sound

Wisconsin children from low-income families are now on track to get nutritious foods over the summer. Federal officials have approved the Badger …

Social Issues

play sound

Almost 2,900 people are unsheltered on any given night in the Beehive State. Gov. Spencer Cox is celebrating signing nine bills he says are geared …


The U.S. teaching workforce remains primarily white while the percentage of Black teachers has declined. However, the percentage of Asian and Latinx teachers is rising.(WavebreakMediaMicro/Adobestock)

Social Issues

play sound

Education advocates are calling on lawmakers to increase funding for programs to combat the teacher shortage. Around 37% of schools nationwide …

Environment

play sound

New York's Legislature is considering a bill to get clean-energy projects connected to the grid faster. It's called the RAPID Act, for "Renewable …

Social Issues

play sound

Michigan recently implemented a significant juvenile justice reform package following recommendations from a task force made up of prosecutors…

Health and Wellness

play sound

Medicare and Medicaid are key sources of health coverage for many Americans and some people qualify for assistance under both programs. With lagging …

 

Phone: 303.448.9105 Toll Free: 888.891.9416 Fax: 208.247.1830 Your trusted member- and audience-supported news source since 1996 Copyright © 2021