I certainly agree that the banks should be penalized for loaning money irresponsibly, however if you really dig into the detail of FAS 157, it is pretty clear WHY the banks are being forced to take huge write downs. BofA did not have billions of dollars in loans default, BofA’s portfolio was devalued due to FAS 157.

I am hesitant to drag McCain into this (frankly, I did not catch the news last night). He is a part of this, but he really has no more power than 99 other senators at this point.

As far as the Venture Capitalists are concerned, since most of their money is in private equity, a bailout does not have a direct correlation with them except they own private companies that will be impacted by a financial downturn (just like everyone else in the country)

The venture capitalists have a lot of gain if the bailout happens. It is not really as simple as they make it out. A lot of people made loans that they should not have made. A lot of companies decided since the house prices were going up there was no risk to those loans and decided to insure them to make some “free” money on premiums. I am not an accountant but most of the loans are sold to investors so the banks do not have them assets anyway so they do not follow under those rules.

I would like to see the bailout happen with a package to include new regulations. GW is not known for following through on his plans to overhaul the system. I am not saying there has to be a ton of regulation but when you are loaning money to people without proof of income — that is criminal and should not be rewards. I had to have tax returns and check stubs when I applied for my loans.