Where the Bailout Went Wrong: Parting Shot From TARP Inspector General Neil Barofsky (NYT Op-Ed, Video)
Barofsky's last day on the job was last week, and he closed it out with an editorial in the New York Times and a final appearance before Congress. He is leaving to become a senior fellow at the NYU School of Law.
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Where The Bailout Went Wrong
By SIGTARP Neil Barofsky
TWO and a half years ago, Congress passed the legislation that bailed out the country’s banks. The government has declared its mission accomplished, calling the program remarkably effective “by any objective measure.” On my last day as the special inspector general of the bailout program, I regret to say that I strongly disagree. The bank bailout, more formally called the Troubled Asset Relief Program, failed to meet some of its most important goals.
From the perspective of the largest financial institutions, the glowing assessment is warranted: billions of dollars in taxpayer money allowed institutions that were on the brink of collapse not only to survive but even to flourish. These banks now enjoy record profits and the seemingly permanent competitive advantage that accompanies being deemed “too big to fail.”
Though there is no question that the country benefited by avoiding a meltdown of the financial system, this cannot be the only yardstick by which TARP’s legacy is measured. The legislation that created TARP, the Emergency Economic Stabilization Act, had far broader goals, including protecting home values and preserving homeownership.
These Main Street-oriented goals were not, as the Treasury Department is now suggesting, mere window dressing that needed only to be taken “into account.” Rather, they were a central part of the compromise with reluctant members of Congress to cast a vote that in many cases proved to be political suicide.
The act’s emphasis on preserving homeownership was particularly vital to passage. Congress was told that TARP would be used to purchase up to $700 billion of mortgages, and, to obtain the necessary votes, Treasury promised that it would modify those mortgages to assist struggling homeowners. Indeed, the act expressly directs the department to do just that.
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Bloomberg with SIGTARP yesterday...
Further reading:
Apr 6, 2011 at 1:27 PM
Reader Comments (14)
http://www.bloomberg.com/news/2011-03-30/merrill-lynch-bofa-win-dismissal-of-race-sex-bias-lawsuit.html
http://www.bloomberg.com/news/2011-03-30/former-madoff-employees-lose-motion-to-have-criminal-charges-dismissed.html
JFK's trust of the Joint Chiefs was betrayed by their claims leading to the Bay of Pigs problem. This set the cabal. JFK and his brother were surrounded by enemies.The nationalizing of Cuban off-shore oil sealed it with the Bush clan (ie.ZapataOil and the three support ships for the Bay of Pigs invasion being the Barbara, The Houston, and the Zapata, GHW Bush's wife, home town, and oil company). A picture exists of GHW Bush leaning against the front wall of the Texas School Book Building that some shots were fired from that morning. He had no alibi.
For over 300 years, the Skull and Bones Society has been pirates working for England. But now I am told they don't do that any more. Now money by the billions is embezzled or stolen through the lack of Skull and Bones controlled S.E.C. action to be placed in accounts in British protectorates. Which Prince Chaalllz tells us are outside of British bank inspecting jurisdiction. Saddam Hussein's Iraq gold was given to Morgan-Stanley to be placed in some of these off-shore out of reach accounts. The gold stolen by Japan during pre WWII days and picked up and hidden by Marcos and later extorted by certain American interests as well as the WWII German Nazi Black Eagle stolen gold kept by certain American CIA/Texas rich oilguy interests were a main reason to cover tracks by dropping the WTC's and audit room at the pentagon on 9/11/2001 .Twasn't bin Laden. The motive included over 200 billion dollars in freshly laundered scrip.
Download Jeff Prager's books QUICK before the internet is destroyed. Happy hunting.
Are the homeowners, such as myself, that do qualify for a modification through the MHA program just going to be dumped? It is beginning to appear that way from where I sit.
Just another Hope-less homeowner in Georgia!
Commentary: There’s a lot invested in keeping the euro going
http://www.marketwatch.com/story/is-ireland-really-going-bust-2011-04-05?link=kiosk
The minutes show that for a “few” Fed members, economic conditions might unfold in a way that would warrant the launch of an exit plan this year.
At the same time, a few others noted that the Fed’s ultra-low monetary policy may be appropriate “beyond 2011.” It was not clear whether this camp favored another round of asset purchases or simply wanted to hold on to the assets already purchased.
http://www.marketwatch.com/story/feds-post-qe2-debate-underway-march-minutes-2011-04-05
http://www.marketwatch.com/story/bernanke-strong-clearinghouse-oversight-needed-2011-04-04
Cites increased political, budgetary, economic uncertainty
http://www.marketwatch.com/story/moodys-downgrades-portugal-to-baa1-2011-04-05
Remember Dexia? The Fed Saved Them
http://market-ticker.org/akcs-www?post=183710
http://www.washingtonpost.com/business/economy/wachovia-cheated-investors-by-inflating-markups-sec-says/2011/04/05/AFTngykC_story.html?hpid=z2