T. Timothy Ryan, president and CEO of SIFMA, said the Treasury needs to
return to its original goal of pricing and purchasing troubled assets
from the banks. "Our hope is that between now and the inauguration,
this does not go into cold storage, because the system can't afford
that," Ryan said. "We need them to stay focused and make some
decisions."
Ryan also said that given the "breadth of the
markets," the survey provides policymakers with meaningful direction on
where "regulators' tools might be targeted to be most effective,
particularly as it relates to providing price transparency."
The
survey of 445 firms by SIFMA and other financial industry trade groups
found that a large percentage of financial firms would be reluctant to
participate without more details about any potential program. The
survey found that:
- More than nine in 10 said they were less likely to participate in the
so-called Troubled Asset Relief Program, known as TARP, because of a "lack of
clarity";
- Large firms are more likely to participate;
- Institutions would prioritize the purchase of subprime and Alt-A
residential real estate, followed by commercial real estate,
particularly for smaller institutions;
- Firms believe whole loans and securities should get roughly equal prioritization.
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Donna Block
The Securities Industry and Financial Markets Association or SIFMA, the financial industry lobbying group, announced that a recent survey
found a large percentage of financial firms are reluctant to
participate in the Treasury Department's rescue plan because they say
it lacks clarity. 
