Letter to Congress

Dear Congressman,

This letter is written in regard to the Federal government's response
to the current economic crisis.

The most logical solution to the current financial crisis has nothing
to do with recapitalizing the banks, placing toxic assets in a bad
bank, or even guaranteeing toxic assets. None of these solutions
strike at the heart of this matter. Instead, a more logical approach
would include:

1. Capitalizing good banks and breaking-up the good assets of bad
banks. Stock holders of the bad banks would receive small portions of
shares in the new good bank. Their remaining shares would become
worthless.

2. Creating new banks which have borrowing power to swallow up only
the good assets of bad banks. New banks would bid on the good assets
from the bad banks. Later, shares would be sold to the public in an
IPO. The U.S. government would be the main beneficiary here.

Regardless, bad banks should not be rewarded with additional government
monies. While there are some "feel good" measures like limiting
executive pay or company trips, these initiatives fail to reach the
heart of the issue which is poor management, short-sighted business models,
and greed. It should be duly noted that the people responsible for making
these terrible decisions that put their companies, investors, and now taxpayer
at risk were the ones to benefit the most. Ironically, now that these
institutions are falling apart these individuals are still making business decisions! Bank of America could well be the poster child of this debacle.

The current stimulus plan has several provisions that must be removed.
First, the notion that debtors should be able to re-negotiate mortgage
debts, or have a judge adjust mortgage amounts is a poor idea. People
should pay their debts whether the there is an ARM, ALT-A, or Sub-prime
loan. While we know there are some difficult decisions to be made
regarding the bankruptcy of these individuals, this mess was not
created by most Americans. Therefore, most Americans should not be held
accountable for the problems facing creditors or debtors. A loan is an
agreement between two parties. It is either the responsibility of the
creditor the debtor to work out a loan arrangement, not government.
Encouraging companies to lend more could in this time period in the
end, could exacerbate the problem.

Congress created the Federal Reserve, and while it is a quasi-public
institution, their current role needs complete transparency and
disclosure to the American people. The notion of loaning money without
disclosing collateral is at the bare minimum suspicious, and at most
could be considered an act of treason. Anything less than full
disclosure would be against the principles that our great nation was
founded upon. There is no doubt that we are in un-chartered waters. I
appreciate your diligent efforts to look out for the best interests of
the American people.

Respectfully Yours,
Brian A. Davis