Tim Ryan, president and CEO of the Securities Industry and Financial Markets Association (SIFMA), today released the following statement after Treasury Secretary Paulson spoke on the TARP program.
“Secretary Paulson has a comprehensive understanding of the serious challenges facing our nation. He and his team have worked creatively and diligently to build a number of programs designed to address the problems we face today. These important projects will help stabilize our economy, especially the efforts to inject capital into financial institutions and on securitization.
“Securitization is a critical engine of today’s economy, making available additional capital for borrowers. The recent turmoil has stalled large parts of this market and restarting it will help ensure consumers get the loans they need for homes, cars and education.
“I am disappointed Treasury is choosing to de-emphasize the asset purchase portion of the TARP program. Based on my experience with the Resolution Trust Corporation, I believe a key ingredient to a strong recovery is the creation of price discovery through some type of transparent purchase program. Until we have a functioning marketplace -- where buyers and sellers agree on prices and institutions can subsequently judge the value of the assets they hold -- uncertainty could keep many financial players on the sidelines, restricting lending capital for the larger economy. Treasury is uniquely positioned to bring these buyers and sellers together.
“Understandably, Treasury has both limited time and resources and must make hard choices. But as we move forward, and in planning for the next administration, we hope there will be further opportunities to comprehensively revisit this important program.”
