How could Paulson and the Treasury Department assist the housing market? There seems to be much they can’t do, but a small program hidden within the confines of the Treasury Department can spring into action if required.
The Treasury Department has its own legislated Bank, the Federal Financing Bank, to assure efficiency in off-budget financing, to help fund historically black colleges, and to lend capital to rural power companies at below market interest rates. Its a broad program… Their annual statement seems to make it very clear that bank has no legislated limits, Paulson can do with the bank anything he pleases.
Or have they already intervened? The last news release from the FFB was released in October 2007. Since then the site has been quiet. Is Hank Paulson up to some Goldman tricks or will he treat the GSE’s with some additional capital? The FFB has not issued a November 2007 or December 2007 news release. Someone will need to file a FOIA request…
Amazingly, the FDIC is intervening to prevent Jeffrey J. Prosser from accessing any loans from the FFB through his companies, banks, or power companies. The rush to impose a temporary cease and desist order is a bit mysterious. Is the FFB in trouble or has it intervened and disrupted the financial markets?
