Market Still Assumes a Bailout
We are reposting this interview from last Fall in light of recent discussion on ending too big to fail. Barofsky has a unique perspective on banks and bank fraud after serving as Special Inspector General of TARP for 3 years under Bush and Obama. He is a truth teller and is not part of the Tim Geithner fan club. Check out the op-ed below.
"The TBTF banks are 25% bigger than they were in 2008. If one of them gets into trouble they will tear down the entire economy along with it. And Washington is going to have to bail them out."
Geithner and Barney Frank:
Barofsky discussing AIG:
Here Bernanke tries to tell Eilzabeth Warren the Feds could resolve any one of the largest banks without issue and no more bailouts will be needed.
He also lives in a world of purple unicorns.