Special Inspector General Neil Barofsky tells us what most of us already know: TARP money went to losers. According to IG Barofsky, institutions receiving money in the first round of redistribution of taxpayer’s wealth, were not sound institutions and should not have qualified for the funds.
“These are healthy institutions, and they have taken this step for the good of the economy,” Paulson had declared at the time.
Barofsky said that the fact that Citigroup Inc. and Bank of America Corp. soon required billions in additional assistance highlighted the inaccuracy of that claim and raised questions about the whole effort. In addition, Merrill Lynch, which was also in the original nine, was in the process of being acquired by Bank of America because of its weakening financial position.
“Statements that are less than careful or forthright — like those made in this case — may ultimately undermine the public’s understanding and support,” the report said. “This loss of public support could damage the government’s credibility and have long-term unintended consequences that actually hamper the government’s ability to respond to crises.”
Note that this report gives Paulson and Bernake no out. The statements were “less than careful.” Secretary Paulson’s announcement on television, with George Bush standing by his side in September 2008, is one of those moments I will always remember. In my kitchen, looking out over the kitchen bar to the TV, my husband and I listened and couldn’t believe what we were hearing.
Anyone believing this whole thing was not contrived, is not paying attention. Usher in Barack Obama.
The Federal Reserve and the Federal Deposit Insurance Corporation also joined in the deception. Nevermind that the FDIC was soon claiming that they were underfunded and couldn’t cover the claims coming their way.
Barofsky’s report says “the government did not have the time needed to get the toxic asset program up and running,” and that is why Paulson changed horses mid-stream, didn’t buy up toxic assets as first planned – and just “injected capital” (gave money to the banks to enable them to lend out so that you and I could purchase a home or start a business, which didn’t happen).
Henry Paulson and Ben Bernake led the drive to bailout AIG. Paulson engineered the bailouts of Fannie Mae and Freddit Mac. Remember that Paulson had complete control – the last and only say about these funds. King Henry Paulson was granted unprecedented authority by Congress – historic in it’s stark negating of Congress’ own powers. It was Paulson who told bankers they would take the government money, whether they needed it or wanted it.
Goldman Sachs, of which Paulson is a previous CEO, benefitted from at least $12 billion of the bailed-out AIG funds.
IG Barofsky has exposed this insider-scam (that left Bush an outsider) that, in my opinion, put Barack Obama in the White House, and put the future of our grandchildren and great-great grandchildren in the trash heap of un-American history. Ben Bernake continues today as the Chairman of the Federal Reserve – an Obama nomination.