Community Bankers Association of Illinois

CBAI Offers Draft Letter Regarding Congressional Action on GSE Losses

September 19, 2008 - - - Following up on CBAIís Call to Action sent on September 18th, CBAI has drafted a sample letter that community bankers can customize and e-mail to their members of Congress. CBAIís Call to Action and sample letter have followed developments that occurred in Washington, D.C. late yesterday. The Treasury Department, working with key members of Congress, is proposing to create a federal entity that would bail out large financial entities with troubled assets and is proposing to fully back investments in money market mutual funds without specifying any cost to those funds. CBAI believes that any such relief legislation should provide comparable relief for Americaís community banks by requiring the newly-created federal entity to purchase the shares of Fannie Mae and Freddie Mac stock that were dramatically devalued by the action of the Treasury Department of September 7th. CBAI also believes that no federal financial safety net for money market mutual fund investors should be provided without a cost comparable to the premiums that our community banks pay for FDIC insurance.

Please click here for the letter, modify it as you deem appropriate, sign it and e-mail it to your member of Congress and to our Senators. If you have any questions, please contact CBAIís Department of Governmental Relations.

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