Llp Comments

From: Sent: Thursday, April 02, 2009 6:15 PM To: LLPComments Subject: Simply

Anonymously, please: WE MUST HAVE FULL DISCLOSURE AND REGULATION! Let's stop touching the pretty, glowing coils on the stovetop. And geithner & FDIC - enough with the nauseating acronyms. Just plainly call it theft, please. WE PUBLIC SCHOOL-EDUCATED PEOPLE ARE NOT AS STUPID AS YOU ASSUME. And we are SO sick of the abuse.

From: Chuck Davies [mailto:[email protected]] Sent: Friday, April 03, 2009 1:03 PM To: LLPComments Subject: Legacy program

This program to save zombie banks instead of the public is an outrage. The idea is theft on the grandest scale. The bankers are pigmen stealing our childrens future. Dont think were all dumb and don't know what's happening here. It's called gaming the system. They will buy each others assets at a price that they are not even close to worth and stick it to the taxpayers. You are all traitors and need to be relieved of your duties..I look forward to the day when the revolution comes and all the bankers, govt. agencies, congress, ratings agencies, wall street, hedge funds and insurance companies are history.. Your programs are full of lies and deceit. A well informed citizen. regards, Chuck Davies

From: Christine Cooney [mailto:[email protected]] Sent: Sunday, March 29, 2009 1:37 AM To: LLPComments Subject: Legacy Loans Program To whom it may concern, I am writing to inform you of my concerns for this latest program. While I am not employed by the financial sector, I am a taxpayer. As such, I am obliged to tell you how broke I am as you are continually reaching into my bank book to pay for these crazy bailouts. What, you didn't think I could see through this latest PPIP? Being broke, I cannot afford this. Neither can the rest of the taxpayers. I'm not sure if you've seen the latest numbers, but this government is in debt up to its ears. It therefore follows: you can't afford it. Do you get this? You are spending my money. From your site:

"To address this concern, the Treasury will join with private investors to purchase these assets. This combination uses the expertise of the private sector and discipline from the financial markets to determine a market-based price for loans and other assets that have been hard to value." It is not a market value when the government is putting up more than 80% of the money. There will be no discipline from the financial markets when they are allowed to pay for their own bad "loans and other assets" with guaranteed money from the government. Rather, they will be inflating the price resulting in even more toxicity on the books.

Regards,

From: Benjamin N. Dover III [mailto:[email protected]] Sent: Sunday, April 05, 2009 3:48 PM To: LLPComments Subject: Legacy Loans Program

Ms. Bair: I'm confident that I speak for most Americans when I note that the proposed PPIP is grossly unfair to the banks, investors and asset managers. This sweetheart deal for taxpayers would penalize banks for finding themselves in an unforeseeable predicament for which they bear no responsibility. It would also require selfless investors and asset managers to bear an unconscionable portion of the risk in return for minimal reward. If we're going to get through this crisis, everyone's going to have pitch in and sacrifice -- and that includes the taxpayer. So, unless you want the global financial system to be Lehmaned again, I suggest you change the terms of the program as follows: 1. Given that the underlying loans are sound, performing and cash flow positive, they should be priced at the banks' "mark-to-model" valuations plus, of course, a premium in order to induce the banks to make the sacrifice of parting with these valuable legacies. I suggest that market-driven price discovery occur in a range of 120-140% of par depending on the specific assets at issue. 2. The Government would put up 100% of the capital plus 100-1 leverage in the form of non-recourse financing funded by a combination of the FDIC fund for deposit protection and the Social Security endowment. (Medicare and Medicaid could also be asked to chip in as necessary -- I see no reason why the poor and elderly should not pay their fair share here). 3. Once bought, these assets would then be gifted to large hedge funds and private equity firms. In order to properly allocate risk, they would be forced to accept 100% of any profit and 0% of any loss. (And remember: hold your ground if the investors try to haggle over this.) 4. A small number of asset managers should be selected in secret to manage the assets in return for guaranteed fees to be paid by the Government. Typically, hedge funds are paid 2% of the value of the assets under management plus 20% any gains. That seems fair here. Because investors will be entitled to 100% of any gains, the Government will need to come up with the extra 20% for the asset managers. (I suggest diminishing handouts to socialist programs like Head Start and AIDS-research organizations.) 5. Obviously, you'll need to guarantee all parties that in exchange for rescuing the taxpayer they won't be subject to any Government meddling before, during or after the transactions are completed. I suggest you lobby Congress to pass a law prohibiting it and all regulators (you too, Ms. Bair) from engaging in any interference or exercising any

oversight over the program or the parties involved. In addition, Congress should grant a pre-emptive amnesty and pardon to all parties for any wrongdoing that they later may be unfairly accused of in connection with the program. (Remember, contrary to what certain populist muckrakers may claim, "gaming the system" is just another word for "nothing to lose".) I hope it goes without saying that none of the fees or profits resulting from the PPIP should be subject to any ordinary (much less special) taxes. Finally, I think it would be appropriate for you, Mr. Geithner and Mr. Bernanke to send letters of gratitude to all parties involved for their generous effort to bail out the American taxpayer. Their magnanimity, propriety and responsible leadership during this crisis should be examples to every American. Benjamin N. Dover III [email protected]