James Terry, Chief Public Advocate for the Consumers Rights League (CRL), today issued the following statement on an ICBA report that financial institutions that opt out of the FDIC’s Temporary Liquidity Guarantee Program likely will be named on a public list and be required to notify their customers:
James Terry, Chief Public Advocate, Consumers Rights League:
“Reports that the FDIC will form a “blacklist” of safely functioning banks that refuse government intervention will create a false sense of insecurity in customers and blackmail working banks into socializing themselves.
“This proposal is ridiculous, outrageous, and offensive to consumers and could trigger a run on these banks and create an even worse economic situation than we now face. This is precisely the wrong prescription during these troubling times. Working banks should be supported, not punished into a flawed system that sets-up future failure and scares customers.
“Community banks, in particular, were not helped by the bailout and most are not in need of capital infusions. Forcing banks to take help that their boards feel is not necessary by threatening no future help changes our regulatory structure into a totalitarianism.”
About The Consumers Rights League:
The Consumers Rights League is a non-profit, non-partisan educational organization dedicated to protecting consumer choice and access to the marketplace. Through investigative analysis, CRL produces quality research that thoroughly documents the real-world choices and challenges consumers face and reports on the benefits enjoyed by an overwhelming majority of consumers. Learn more about CRL’s mission at www.consumersrightsleague.org.