Thinking About the MessSeptember 16, 2008 - by Donny Shaw
It’s going to take some time for Congress to respond to the financial-market meltdown with legislation, but here’s where the brainstorming is beginning:
>The turmoil on Wall Street is prompting a key congressional Democrat to consider a broad federal market rescue that could include creating a new government entity to take over collapsed financial institutions and sell off their assets, as lawmakers did during the 1980s savings and loan crisis.
>Rep. Barney Frank, D-Mass., the House Financial Services Committee chairman, said a body like the Resolution Trust Corp. – the largely taxpayer-financed company that seized and liquidated the savings and loans – might be needed in coming months to stabilize markets and prevent more implosions at major financial institutions.
via the AP.