Published: September 24, 2008 10:46 pm         

‘Greed’

Several local citizens balk at bank bailout

Greed.

When you ask a southern West Virginia resident what’s wrong with the country’s financial industry “greed” is usually the first word spoken.

“I don’t favor any kind of bailout plan for these greedy people,” said Meri Charron of Bradley. “It will be the taxpayers paying for this bailout and that’s totally unfair.”

Charron says the bank’s chief executive officers could solve the problem themselves if they would stop the large salaries and bonuses.

“If these banking CEOs would cut their salaries they wouldn’t be in the predicament,” she said.

James Allen of Daniels agrees.

“I don’t think the taxpayers should be responsible for a bailout when I saw on the news that some of these CEOs made millions and millions of dollars in bonuses,” Allen said. “Why should they be bailed out, when they were in charge of those institutions that are in trouble?”

If the government doesn’t bail out these financial industries could that mean a recession?

“I feel like we are already in one now,” Allen said. “How much worse can it get?”

The Bush administration’s $700 billion plan to bail out the financial industry is “extremely faulty,” according to former President Jimmy Carter, according to an Associated Press report.

Carter told the AP he believes action is necessary, but is skeptical of Treasury Secretary Henry Paulson’s current plan.

“It’s only three pages of outline. It gives him dictatorial power with no supervision,” Carter said.

Carter said the $700 billion bailout figure amounts to “$10,000 for every family in America.”

“I believe that the proposal put forth by Mr. Paulson is extremely faulty,” Carter said.

Allen says he favors another round of federal economic stimulus checks.

“That would help the economy more than these bailout plans,” he said.

Charron says if big corporations would invest back into America I think that would stimulate the economy.

West Virginia really seems to remain unaffected by the financial and mortgage booms and busts

It’s the low income people Charron worries about.

“We all need to do what we can to help these people,” she said. “Donate to food pantries, donate to the Salvation Army and these other organizations that help the poor.”

So far this year, a dozen federally insured banks and thrifts have failed, compared with three last year. The country’s largest thrift, Washington Mutual Inc., is faltering.

The U.S. has taken extraordinary measures in recent weeks to prevent a financial calamity, which would have devastating implications for the broader economy. It has, among other things, taken control of mortgage giants Fannie Mae and Freddie Mac, provided an $85 billion emergency loan to insurance colossus American International Group Inc. and temporarily banned short selling of hundreds of financial stocks.

On Friday in West Virginia, Ameribank, Inc., Northfork, WV was closed by the Office of Thrift Supervision. Subsequently the Federal Deposit Insurance Corporation (FDIC) was named receiver. No advance notice is given to the public when a financial institution is closed.

All deposit accounts at the West Virginia branches have been transferred to Pioneer Community Bank, Inc., Iaeger. All deposit accounts at the Ohio branches have been transferred to The Citizens Savings Bank, Martins Ferry, Ohio.

For more information on Pioneer Community Bank, Inc. visit the Web site at http://www.pioneercommunitybank. com.

For more information on The Citizens Savings Bank visit the Web site at http://www.thecitizensbank.com.

Charlie Houck, City National Bank’s senior representative in Beckley, says he understands the concerns of local residents regarding the nation’s financial industry problems.

“It’s a very difficult issue to comprehend,” Houck said. “But not all banks are in trouble, not at all. Many, like ours, are very financially stable.”

Houck recommends taxpayers check the financial statements and documents of their bank.

“Our can get their stock symbol and go online or go to your bank and ask questions,” he said.

As far as a government bailout, Houck says he’s torn.

“On one side you say just let the market take care of it and let those who made bad decision fail,” he said. “On the other side, I really don’t know what the overall ramifications would be, like a giant leap in unemployment, people losing their jobs, a possible recession or even a depression. That would all be horrible news and bad times for our country.”

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