It is not the business of the feds to bail out anything.
<http://scottystarnes.wordpress.com/author/scottystarnes/> TARP
Inspector General: Dodd-Frank Financial Reform will not stop future Wall
Street
Bailouts<http://scottystarnes.wordpress.com/2011/01/28/tarp-inspector-general-dodd-frank-financial-reform-will-not-stop-future-wall-street-bailouts/>
*Scotty Starnes
<http://scottystarnes.wordpress.com/author/scottystarnes/>*| January
28, 2011 at 12:40 PM | Tags: Barney
Frank <http://scottystarnes.wordpress.com/?tag=barney-frank>, Chris
Dodd<http://scottystarnes.wordpress.com/?tag=chris-dodd>,
Dodd-Frank financial reform
bill<http://scottystarnes.wordpress.com/?tag=dodd-frank-financial-reform-bill>,
Inspector General Neil
Barofsky<http://scottystarnes.wordpress.com/?tag=inspector-general-neil-barofsky>,
TARP Inspector General Neil
Barofsky<http://scottystarnes.wordpress.com/?tag=tarp-inspector-general-neil-barofsky>,
taxpayer funded
bailouts<http://scottystarnes.wordpress.com/?tag=taxpayer-funded-bailouts>,
too big to fail
banks<http://scottystarnes.wordpress.com/?tag=too-big-to-fail-banks>|
Categories: Political
Issues <http://scottystarnes.wordpress.com/?category_name=political-issues>|
URL:
http://wp.me/pvnFC-4h7
It's OK taxpayers. Obama has promised us that there would be no more
taxpayer-funded bailouts. We can always trust in Obama's promises (wink).
ABCNews.com<http://blogs.abcnews.com/thenote/2011/01/watchdog-disputes-white-house-claim-that-wall-street-reform-will-end-taxpayer-bailouts.html?utm_source=Newsletter&utm_medium=Email&utm_campaign=Morning%2BBell>
reports:
ABC News’ Matthew Jaffe & Arlette Saenz report: When the Wall Street
reform bill passed Congress last summer, President Obama said the new
regulations would mean that taxpayers would never again be asked to bail out
financial institutions.
“Because of this reform, the American people will never again be asked to
foot the bill for Wall Street’s mistakes. There will be no more
taxpayer-funded bailouts – period,†*the President
said<http://www.whitehouse.gov/the-press-office/remarks-president-passage-financial-regulatory-reform>
* July 15.
Not so fast, warns bailout watchdog Neil Barofsky.
Watch the
video>>><http://blogs.abcnews.com/thenote/2011/01/watchdog-disputes-white-house-claim-that-wall-street-reform-will-end-taxpayer-bailouts.html?utm_source=Newsletter&utm_medium=Email&utm_campaign=Morning%2BBell>
Barofsky, the Special Inspector General for TARP (SIGTARP), said *in a new
report to
Congress<http://www.sigtarp.gov/reports/congress/2011/January2011_Quarterly_Report_to_Congress.pdf>
* that he interviewed Treasury Secretary Tim Geithner last month and
Geithner acknowledged that “in the future we may have to do exceptional
things again†if the government faces a financial crisis as severe as the
2008 one.
“To the extent that those “exceptional things†include
taxpayer-supported bailouts,†Barofsky said, “his acknowledgement serves
as an important reminder that TARP’s price tag goes far beyond dollars and
cents, and that the ultimate cost of TARP will remain unknown until the next
financial crisis occurs.â€
*At a hearing today before the House Oversight Committee, Barofsky cautioned
that future bailouts can occur if the government does not act to reduce the
size of “too big to fail†banks*.
“One of the legacy results of TARP is that the market still believes that
the United States government is backstopping the largest *too big to fail
institutions and that causes a whole range of problems*,†Barofsky said.
“This is a market distortion, and as a result, the executives of those
banks get back into the position where it’s *heads I win, tails the
taxpayer bails me out.†*
“They need to have the regulatory will and the political will to rein in
the size of these banks,†he said. “If they don’t have the credibility
that they will not be bailing out institutions going into the future, it
almost won’t matter otherwise because again those incentives will still be
warped, that discipline will still be gone, and those risks where the idea
the taxpayer will bail out the executives, the shareholders, the counter
parties will continue a perversion of the system.â€
The Dodd-Frank financial reform bill alsoleft out
regulation<http://www.msnbc.msn.com/id/38250967/ns/business-eye_on_the_economy/>
of
Freddie Mac and Fannie Mae, leaving the taxpayers on the hook. Don't worry,
its only $400 billion. Now, why hasn't President Obama appointed a Inspector
General<http://firedoglake.com/2009/12/23/jane-hamsher-grover-norquist-call-for-rahm-emmanuel%E2%80%99s-resignation/>
to
oversee Freddie and Fannie?
Continue
reading>>><http://blogs.abcnews.com/thenote/2011/01/watchdog-disputes-white-house-claim-that-wall-street-reform-will-end-taxpayer-bailouts.html?utm_source=Newsletter&utm_medium=Email&utm_campaign=Morning%2BBell>
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