posted on Feb, 11 2009 @ 05:59 PM
Dear Mr. President:
As you have pointed out in your recent primetime press conference, our American economy is teetering on the brink of catastrophe. You admitted that
financial institutions leveraged themselves beyond responsibility by playing with a dollar as if it were thirty.
The TARP payments have lacked oversight, so it is not clear how the money has been spent, but the unfreezing of credit has not been achieved. All
major banks that have received TARP funds should be investigated for existing and previous fraudulent use of consumers' deposits (excessive
leveraging) and the misuse of TARP funds (violation of both the requirements and spirit of TARP).
Millions of Americans are currently out of work through no fault of their own and millions more jobs are in jeopardy due to the lack of banking
reforms, as well as previous and continuing malpractice.
Your new Treasury Secretary and his plans have not been well received. There is rampant skepticism and doubt among average Americans about whether
Treasury plans for errant banks and your stimulus plan will do enough to bring about desperately needed banking reforms and immediate relief to
What we do know is that the average American continues to suffer from abusive banking practices, namely the Three G's of current consumer banking...
Greed, Gimmicks, and Gouging.
Banks are now sending notices to credit card holders, who are current with their payments and not in default, such as the following... "our records
indicate that your account may be a high default risk...you may accept our new terms of 29.9% APR or close your account to further purchases thus
agreeing to pay down your balance at a rate of 24.9%"
Mr. President, these are usary rates that should be illegal. Americans call on you and the U.S. Congress to immediately discourage these abusive,
unjustly punitive rates and instruct banks to cap all existing and new mortgage rates at a maximum of 6.9% (no balloons, no gimmicks) and cap all
existing and new credit card rates at a maximum of 12.9%. Capping rates at these points would still give banks plenty of profit during these
hard economic times.
If banks do not agree to these terms, they would be considered to be default risks, required by law to pay back all previously distributed TARP funds
plus 29.9% interest immediately or face federal fraud indictments and a freezing of all assets pending investigation of malpractice and fraud.
Further, we urge you, to better represent consumers, to create a blue-ribbon panel of economic advisors who are not recent alumni of Goldman Sachs
and/or the Federal Reserve. May I suggest the following persons to participate in your panel of advisors:
Mr. Ross Perot
Congressman Ron Paul
Mr. Ralph Nader
Ms. Catherine Austin Fitts
Mr. Mish Shedlock
Mr. Clark Howard
Thank you very sincerely