With the first tranche of TARP funds former Treasury Secretary Paulson paid 78 biilion dollars more for banks stocks than they were worth and no funds were directed toward solving the housing & foreclosure crisis. We the public immediately lost 78 billion dollars.
With the second traunch of TARP fund Treasury Secretary Geithner wants to provide incentives to investors (aka banks) in the form of commitments to absord some of the losses from any assets they purchase should the value of these assets continue to decline. So banks could by each others worst assets at what ever price they negotiate. Then they get to keep any profits, and the tax payers would absorb any losses.
There are no new regulations. No investigations into any wrong doing and no plans or funding allocations to address the housing & foreclosure crisis.
Wall St Bankers have enjoyed unrestricted access to our elected officials and/or their minions. Paulson, Geithner, Summers and others who have worked at these banks take positions of authority in the same government agencies that are charged with oversight, investigation, and enforcement. Then we, the public, are supposed to trust them to work in the public interest. This is clearly a conflict of interest in which the public can only loose.
Please write to your representatives and tell them to seize these banks, collect the evidence, investigate crimes, make arrests, and prosecute the wrong doers.