ON THE BANK BAILOUT

"Didn't Treasury Secretary Timothy Geithner say that it was not the administration's intent to control private companies? Then why is it reportedly reluctant to accept TARP repayments from some banks? If it has indeed declined to accept $340 million in payments from banks in Louisiana, New York, Indiana and California, the administration is tacitly admitting that it wants to control those banks as well as others that will try to pay back the taxpayers' money they took in the Troubled Asset Relief Program. By refusing repayment, the government can keep the leverage it bought with the bailouts. Banks that still 'owe' would not be in position to reject the administration as a 'partner.' This reminds us of mobsters making a small 'investment' in a family-owned shop, which is not always wanted by the owners, and then using it to justify taking over the business. ... Before his trip to Europe, President Obama, according to Politico, told a group of financial institution CEOs who were unhappy with the federal war on executive salaries and bonuses, 'My administration is the only thing between you and the pitchforks.' At the time, that sounded like nothing more than exaggeration. ... Looking back, these are small signs that reveal the administration's desire to seize command of the nation's financial system. The bigger, unmistakable sign is the reluctance -- or is it outright refusal? -- to take $340 million from four banks trying to be responsible and operate on their own. This shouldn't be happening in this country. The private sector and the state are not to be mixed. The American financial system is best directed by markets, not politics. Prosperity and liberty suffer when the latter excludes the former."

-- INVESTORS BUSINESS DAILY