Banks and pre-need firms needing a bailout? Bailout my butt!

February 3, 2009 § Leave a comment

Hearings on the Senate committee on banks and finance show that these pre-need companies had encountered a very serious problem prior to the global recession. They bungled billions of pesos worth of their investments both local and abroad. Some, like Legacy, redirected their funds to other businesses affiliated with their group.

Net—most of their top executives already earned more than their legal share with the funds coming from their plan holders.

Now, they want more. Now, they are staking their very reputation, even risking the ire of the public, because of just one thing===they want to justify the expected government action, which is a financial bailout.

Bailout my ass!

If Arroyo allows these pre=need companies to get money from the public coffers under the pretense of a bailout or a re-capitalization, again using public money, Arroyo risks being the first president ousted from power a few months before her valediction.

This is a very tricky and serious issue that government should not treat as a trifling thing, ergo, worth just 2 billion pesos. No. Arroyo should not commit another Garci mistake in this, since her administration now walks under a very tight rope.

ARROYO SHOULD NOT SUCCUMB TO THE GREED OF THESE PRE=NEED COMPANIES AND BANKS. THESE INSTITUTIONS SHOULD RECAPITALIZE BY DISPOSING THEIR OWN ASSETS AND NOW, I REPEAT, DIP THEIR DIRTY AND FILTHY HANDS ON THE PUBLIC’S MONEY. THIS SENDS A VERY WRONG MESSAGE. IMAGINE, THEY ALREADY GYPPED THE PEOPLE BY CONVINCING THEM TO BUY THEIR PLANS. NOW, WHEN THE TIME COMES FOR THEM TO HONOR MATURING PLANS, THEY WOULD NOW ASK GOVERNMENT TO SHOULDER THESE OBLIGATIONS UNDER PAIN OF BANKRUPTCY. SUCH SYNDICATED SCAMS SHOULD END.

And the only way possible for this foolishness to end is for some Partisanos to sample and kill some people behind this nefarious scheme. Let the schemers get their just measure. That will, at least, bring some justice to victims and their families.

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