Editorial: Norm Coleman for Senate

Embarrassing

Seriously, what's happened to the Star Tribune? Over the last 6 years, Norm Coleman has: 1) dutifully helped George Bush fight an illegitimate and disastrous war, 2) failed the country by abdicating his responsibilities as chairman of the permanent subcommittee on investigations, 3) sold out the environment by voting for cloture on ANWR, 4) committed numerous, serious ethical lapses by accepting gifts and discounted rental rates from friends/lobbyists. And the list goes on. As a newspaper supposedly committed to protecting the public's best interests, you have failed miserably in your duties. Your newspaper is in a financial tailspin, and this kind of endorsement will (justifiably) hasten your demise. Avista Capital Partners and the rest of the Star Tribune Editorial board should be ashamed.

So When Will Banks Give Loans?
By JOE NOCERA
Published: October 24, 2008

It is starting to appear as if one of Treasury’s key rationales for the recapitalization program — namely, that it will cause banks to start lending again — is a fig leaf, Treasury’s version of the weapons of mass destruction.

In fact, Treasury wants banks to acquire each other and is using its power to inject capital to force a new and wrenching round of bank consolidation. As Mark Landler reported in The New York Times earlier this week, “the government wants not only to stabilize the industry, but also to reshape it.” Now they tell us.

Indeed, Mr. Landler’s story noted that Treasury would even funnel some of the bailout money to help banks buy other banks. And, in an almost unnoticed move, it recently put in place a new tax break, worth billions to the banking industry, that has only one purpose: to encourage bank mergers. As a tax expert, Robert Willens, put it: “It couldn’t be clearer if they had taken out an ad.”

Friday delivered the first piece of evidence that this is, indeed, the plan. PNC announced that it was purchasing National City, an acquisition that will be greatly aided by the new tax break, which will allow it to immediately deduct any losses on National City’s books.

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I don’t know about you, but I’m starting to feel as if we’ve been sold a bill of goods.