Former New York City Mayor Ed Koch knows a thing or two about fiscal distress and recessions, leading the Big Apple out of its darkest economic times during the late 1970s and early 1980s. The former politician, now partner at Bryan Cave LLP and radio commentator, told radio host Brian Lehrer on WNYC's public radio show "30 Issues in 30 Days" on Thursday that he would have done the $700 billion government bailout much differently.
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"I find it incredible that the United States government, the Treasury Department and Bernanke at the Federal Reserve have failed to require the banks to make loans. ... We're going to be giving money to banks without the requirement that they do anything with it, and I think it's an outrage," Koch said. "We should say to every bank that wants to participate in the $700 billion bailout is you must loan to credit-worthy applicants at the same rate that you did last year."
Apparently, Koch said he urged Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson to consider his plan. But Koch said Bernanke's response to his idea: "[It] was too difficult" to implement. Meanwhile, Koch said Bernanke's rejection was "ridiculous." - Gerald Magpily
