An opinion piece in The Hill by Cornelius Hurley presents the role of banks and the Fed to fund affordable housing in an adaption of It’s a Wonderful Life. It’s called:
It’s not a wonderful bureaucracy
Bankers’ resistance to meaningful reform of their Federal Home Loan Banks invites the invocation of filmmaker Frank Capra.
It’s Christmas 2022. Old Man Potter needs cash to run his bank. He has two choices. He can increase the interest he pays to his depositors from less than 1 percent currently to 3 percent and attract funds. Or he can borrow the funds from his uncle, Sam, on Wall Street at 2 percent. Sam is happy to oblige because his cost of funds is less than 2 percent, thanks to a robust taxpayer subsidy of his debt.
CLICK HERE to read this opinion from THE HILL. Interesting read.
Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder. Email at [email protected]
Gary Fleisher, Editor in Chief of Offsite Construction Magazine
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