TARP Archive

June 29, 2010

Bombing Ants in the Sausage Factory

Filed under: Financial Reform Legislation, Martin Column, TARP — admin @ 7:39 pm

The only aspect of the financial reform legislation that’s truly strong is the level of rhetorical nonsense that both parties have unleashed around it: Democrats and the media exaggerate when they praise it as “the toughest financial overhaul since the Great Depression.”

Not to be outdone, the Republican House minority leader, John Boehner, has weighed in, describing the proposal as a nuclear weapon being used to kill an ant.

Which would make the financial crisis the ant, I guess.

On Tuesday, the nuclear bomb had to go back to the, uh, sausage factory, for some more grinding after Sen. Robert Byrd’s death and the defection of a former Republican reform supporter left the Dems with less than the 60 votes they need to overcome the wall of Republican opposition.

One of the few chinks in that wall had been Sen. Scott Brown. But Brown balked after a $20 billion tax on hedge funds and banks was inserted into the legislation to pay for the costs of modest additional regulation. The Republican senator from Massachusetts said he opposed placing a greater burden on financial institutions and he feared the costs of the tax would be passed on to consumers. So the reform proposal is headed back to the conference committee.

Let’s be clear: overheated and mangled rhetoric aside, the financial reform proposal does nothing to reduce the risk posed by our “too-big to fail” banks or to prevent another crisis. The proposal leaves much of the details to regulators subject to lobbying by the very institutions they’re supposed to oversee.

Now legislators think they’ve found a better bet to fund their reform: you!

According to the New York Times, they’re considering ending the Troubled Asset Relief Program early and diverting about $11 billion in taxpayer funds.

The Times observed this leaves legislators with a couple of awkward choices. “So,” the Times concludes, “the choice becomes a tax that might be passed along to consumers, or a charge directly to American taxpayers.”

Is this the best they can do? I’m increasingly sympathetic to Sen. Russ Feingold, the Wisconsin Democrat who is bucking his president and party, opposing reform because it doesn’t get the job done.

I would suggest that Boehner got it wrong, that the ant[s] are not the financial crisis; they’re the legislators scrambling around serving the banks’ interests when they’re supposed to be serving ours.

But that would give ants a bad name.

April 1, 2010

Quotable: Neil Barofsky

Filed under: Homepage Content, Quotable, SIGTARP, TARP — admin @ 12:47 pm

“Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car.”

Neil Barofsky, January 2010

October 21, 2009

Nickels and Dimes for New Orleans, Billions for Banks

Filed under: Executive Pay, Martin Column, President Barack Obama, TARP — admin @ 12:22 pm

It’s a good thing for the bankers that FEMA wasn’t in charge of the bank bailout.

They’d still be haggling over just how much the bankers were entitled to, who was to blame for the fiasco the banks found themselves in, and FEMA would be making the bankers jump through all kinds of bureaucratic rules and regulations for every dime of relief. Continue reading “Nickels and Dimes for New Orleans, Billions for Banks” »

October 14, 2009

A different kind of bailout

Filed under: Martin Column, TARP — admin @ 10:05 pm

What a striking contrast between the urgency and dramatic action the government mobilized to meet Wall Street’s financial crisis last year and the continuing hand-wringing, half-measures and wishful thinking that have greeted the dire continuing financial crisis on Main Street. Continue reading “A different kind of bailout” »

Never-Ending Bailout is Not a Partisan Issue

Filed under: Martin Column, TARP — admin @ 4:13 pm

It would be hard to find two congressmen more politically opposite than Brad Sherman and Jeb Hensarling

Sherman is solid Democrat from the San Fernando Valley in southern California. Hensarling is a red-meat Texas conservative protege of former senator Phil Gramm.

Sherman and Hensarling may not agree about anything else.

But the two men have been outspoken in one shared view: that the bailout known as the Troubled Asset Relief Program, or TARP has lacked accountability or transparency from day one.

Continue reading “Never-Ending Bailout is Not a Partisan Issue” »

September 16, 2009

Happy birthday bailout!

Filed under: Harvey Column, TARP — admin @ 12:20 pm

In a week, the nation will celebrate the one-year anniversary of Wall Street’s collapse.

For most, it won’t be a festive occasion. A whopping 16% of Americans able to work are unemployed or are working fewer hours than they want. Spending is way down because people are scared and many are unable to borrow – lines of credit have been slashed and credit card interest rates are skyrocketing. Since household spending amounts to at least 30% of the nation’s economic activity, this has had a devastating ripple effect on the economy. Continue reading “Happy birthday bailout!” »

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