How Do You Make Sense of This (TARP)

By
Real Estate Agent with Inactive

Elizabeth Warren, chairwoman of the Congressional Oversight Panel for the bailout funds, reported to the Senate Banking Committee on Thursday that Treasury in 2008 paid $254 billion and received assets worth about $176 billion.

She Explained that the figures were reached by extrapolating the results of a study of 10 government transactions, comparing the price paid by Treasury and the value of the asset at the time of purchase.

The Mission of the U.S. Department of the Treasury as presented on their website is to:

"Serve the American people and strengthen national security by managing the U.S. Government's finances effectively, promoting economic growth and stability, and ensuring the safety, soundness, and security of the U.S. and international financial systems."

One of the Department's specific responsibilities is to enforce Federal Finance Laws.

Secretary Paulson and his staff at the Treasury failed on an epic scale to:

Ensure the safety, soundness, and security of the U.S. and international financial systems.

Investigate any of the financial institutions that were responsible for this Economic Crisis.

Meet their fiduciary responsibilities to the public when they payed more than 44% over the market value for the assets purchased with TARP funds.

Today, according to a Reuters, U.S. Treasury Secretary Timothy Geithner will convene his first meeting as Chairman of the President's Working Group on Financial Markets Thursday (today), but the expanded gathering also will include top banking regulators and White House economic adviser Larry Summers.

The group, created in the aftermath of the 1987 stock market crash to ensure orderly and efficient markets, is led by the Treasury and normally includes the heads of the Federal Reserve, the Securities and Exchange Commission and the Commodity Futures Trading Commission.

It appears to be a step in the right direction but amidst so much caos in the fog of this crisis it is too early to tell.

 

Posted by

George Bennett, Principal Broker, Affiliated, GRI in Port Orford, OR 97465

Affiliated with 'Neath The Wind Realty Inc.

Comments (8)

Joseph Banske
Cherry Creek Mortgage - Waukesha, WI

There is a better way....

Feb 05, 2009 06:10 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Our "leaders" are baffled by the scope of this crisis and cannot create an appropriate response.  They're still conducting politics as usual, while the problem is far beyond usual.  Unless President Obama demands that Congress puts aside partisan politics and becomes the public servants they were elected to be, we'll continue to drop money into a bottomless pit.

Feb 05, 2009 06:11 AM
Nate Rowe
Oakstone Properties, Homes in Richmond VA - Richmond, VA
Realtor, Homes in Richmond VA

We are all awaiting some kind of answer.  They have been failing the American People for way too long.

Feb 05, 2009 06:12 AM
George Bennett
Inactive - Port Orford, OR
Inactive Principal Broker, GRI

Flagstar - I agree. Eventually they will find it. I sincerely hope it will be sooner than later and that they keep the waste of time and treasure to a minimum.

John, The failures of Treasury Dept. and the SEC have reached the level of criminal negligence.

Feb 05, 2009 06:17 AM
George Bennett
Inactive - Port Orford, OR
Inactive Principal Broker, GRI

Nate - How can failures of this magnitude be overlooked? The people responsible for these failures should be held accountable. And we need transparency to prevent or at least reduce the magnitude of these failures.

Feb 05, 2009 06:22 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Not to worry.  They will do whatever is in the best interest of their political contributors and cronies.  That's become the American way.

There are no statesmen in Congress or the administration.  Only political opportunists.

Feb 05, 2009 06:54 AM
Peg Gilliland
Charlottesville Solutions - Charlottesville, VA
Broker, GRI, CDPE

It seems that there is a lot to learn on Active Rain. Thank you for your post.

Feb 05, 2009 07:01 AM
George Bennett
Inactive - Port Orford, OR
Inactive Principal Broker, GRI

Lenn - I had hoped that the new administration would be different. However, there is an abundance of evidence to support your statement.

 

Peg. Thanks for the feedback. I know that I have learned a lot about so many subjects since joining AR.

Feb 05, 2009 12:57 PM

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