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China Times: Don't let tax payers be held hostage by banks

China Times: Don't let tax payers be held hostage by banks

Taiwan editorial abstract (File 3 of a daily roundup) U.S. President Barack Obama's decision to funnel US$150 billion into U.S. banks on the brink of bankruptcy has angered tax payers because these banks have continued to reward their executives with tremendous pay packages.
In order to allay the outrage, which has taken a heavy toll on his approval ratings, Obama unveiled a series of measures to tighten up the government's surveillance of banks.
The so-called Volcker Rule, named after its inventor -- former Federal Reserve Chairman Paul A. Volcker -- is intended to save Obama's plunging popularity and avoid a repeat of the global financial crisis that originated on Wall Street.
Obama's measures were welcomed by financial regulators from around the world but criticized by Wall Street analysts, who claim that the measures will not eliminate the need for the government to step in to help debt-ridden banks.
Furthermore, they said the measures fail to close loopholes in the present system that allowed Wall Street bankers to release the poisonous bonds that triggered the financial crisis.
Obama is facing two obstacles; his bill has to be supported and enacted by Congress, and it needs the cooperation of other countries to be effective.
Riding on the public discontent with the financial sector, Obama is pushing for financial reforms to prevent huge banks from holding the tax payers hostage.
Could President Ma Ying-jeou, whose popularity is dipping to a low at the end of his second year in office, follow Obama's lead by kicking Taiwan's financial reforms into action? (By Maubo Chang)




Updated : 2021-08-03 18:25 GMT+08:00