Bailout watchdog: Response to financial crisis response leaves US with even more risk
WASHINGTON (AP) – The government’s response to the financial meltdown has made it more likely the United States will face a deeper crisis in the future, an independent watchdog at the Treasury Department warned.
The problems that led to the last crisis have not yet been addressed, and in some cases have grown worse, says Neil Barofsky, the special inspector general for the trouble asset relief program, or TARP. The quarterly report to Congress was released Sunday.
“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,” Barofsky wrote.
Since Congress passed $700 billion financial bailout, the remaining institutions considered “too big to fail” have grown larger and failed to restrain the lavish pay for their executives, Barofsky wrote. He said the banks still have an incentive to take on risk because they know the government will save them rather than bring down the financial system.
Yes, that’s what Wall St. are the banking industry are already telling us as they fight reform.
Sheesh, they’re even fighting the requrement to give 45-days notice when they raise interest rates (doubled) on credit card balances through “universal default.”
Poor Little BCS. When are you gonna realize that we are not losing a thing?That those reported numbers come from one of our many divisions designed to fool people into thinking that we are still broke? How do you think we are able to pay ourselves those lovely bonuses at the end of each quarter? We are still sitting on houses that we refuse to sell until we re-inflate the housing bubble again. Ahhhh, so many ways to make money out of you sucke-uh, ahem, I mean, uh, customers!
believecommonsense over 14 years ago
Here’s some alarming news:
Bailout watchdog: Response to financial crisis response leaves US with even more riskWASHINGTON (AP) – The government’s response to the financial meltdown has made it more likely the United States will face a deeper crisis in the future, an independent watchdog at the Treasury Department warned.
The problems that led to the last crisis have not yet been addressed, and in some cases have grown worse, says Neil Barofsky, the special inspector general for the trouble asset relief program, or TARP. The quarterly report to Congress was released Sunday.
“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,” Barofsky wrote.
Since Congress passed $700 billion financial bailout, the remaining institutions considered “too big to fail” have grown larger and failed to restrain the lavish pay for their executives, Barofsky wrote. He said the banks still have an incentive to take on risk because they know the government will save them rather than bring down the financial system.
believecommonsense over 14 years ago
Yes, that’s what Wall St. are the banking industry are already telling us as they fight reform.
Sheesh, they’re even fighting the requrement to give 45-days notice when they raise interest rates (doubled) on credit card balances through “universal default.”
d_legendary1 over 14 years ago
Poor Little BCS. When are you gonna realize that we are not losing a thing?That those reported numbers come from one of our many divisions designed to fool people into thinking that we are still broke? How do you think we are able to pay ourselves those lovely bonuses at the end of each quarter? We are still sitting on houses that we refuse to sell until we re-inflate the housing bubble again. Ahhhh, so many ways to make money out of you sucke-uh, ahem, I mean, uh, customers!
How was my Neocon impression?