TARP was the most blatant case of bait and switch ever perpetrated on taxpayers. Tarp was sold as an idea that the govt would purchase the toxic mortgage assets from the banks at steeply discounted rates. This would allow the govt to place all toxic assets in a traunch and sell them off after the markets quieted down and a reasonable idea of the relative pperformance of the underlying mortgages could be ascertained. The bank in turn would have had smaller balance sheets but they would be rock solid grade a assets. once they got the money they found out the banks had no intention of selling these mortgage assets to the govt so they just gave them the money instead in exchange for equity and preferred stock. Anyone involved in tarp is guilty of fraud against the american people and as far as i’m concerned the sooner we see perp walks the better.
Wouldn't have been enough. And imagine the losses the Treasury would have suffered. The bank TARP made money. We'd be down hundreds of billions on the toxic crap they would have bought.
Anyone involved in tarp is guilty of fraud against the american people and as far as i’m concerned the sooner we see perp walks the better.
The American people don't have a clue one way or the other about TARP. But you should hold your breath waiting for a perp walk.