A proposed public-private partnership that could shape the Inland Empire's economy for years to come is focusing its energies elsewhere after the Treasury Department announced in mid-November that it won't be buying distressed real-estate assets from troubled banks and selling them off.
City and business leaders who are behind the yet-to-be-formed partnership - the Inland Empire Economic Recovery Corp. - were initially lobbying Treasury Secretary Henry Paulson, but now they're at the mercy of the Federal Deposit Insurance Corp.
The FDIC recently said it will recognize the recovery corporation as a competitor when it sells off mortgage assets from seized banks, according to Lance Larson, legislative director for San Bernardino County.
"We have yet to see how the Treasury Department and bad mortgages are going to play out, but with the FDIC ahead of the game, we've switched our tactics," Larson said. "We realized (the FDIC and we) both have common goals, as opposed to a treasury secretary who wants to give money to banks."
Read the story... | Source: 12/08/08 | Posted: The Sun
