Surprise, surprise, surprise. Right. Well, more information is surfacing today that political interference and lobbyists are steering bailout money to their “favorite” banks. TARP funds were to be used to inject money into “viable” banks to get them lending again by creating stability and liquidity. I’ve already reported on the fact that banks have been using this TAXPAYER MONEY to buy other banks instead of lend. Click Here to read that post.
Now we have a new report that these funds are also being used to save “non-viable” banks from complete collapse and failure. How you say? Easy, corruption at the highest levels. Favoritism and the power of lobby.
According to the Wall Street Journal, “in December OneUnited Bank [in Boston] got a $12 million injection from the Treasury’s Troubled Asset Relief Program, or TARP. One apparent factor: the intercession of Rep. Barney Frank, the powerful head of the House Financial Services Committee. Mr. Frank, by his own account, wrote into the TARP bill a provision specifically aimed at helping this particular home-state bank. And later, he acknowledges, he spoke to regulators urging that OneUnited be considered for a cash injection.”
WSJ’s report continues by saying, “Treasury Secretary nominee Timothy Geithner, testifying Wednesday at his Senate confirmation hearing, acknowledged “there are serious concerns about transparency and accountability…confusion about the goals of the program, and a deep skepticism about whether we are using the taxpayers’ money wisely.”
Oh yeah, serious concerns… how about complete and total outrage! We’re talking hundreds of BILLIONS of dollars! If I were to go and steal $1000 I’d be convicted for sure but here we have Senators and Congressman and folks at the Federal Reserve stealing millions and billions in taxpayer money to help their “buddies” out at certain banks.
This sort of news is surfacing daily yet the American people continue to pretty much accept this. The phones in your US Senator’s office should be lighting up! Their website forms should be over-taxed (pun intended) by millions of us screaming about this stuff. If you don’t know how to contact them, go to my Weapons/Resources page and the shortcuts are there for you.
Lane,
Couldn’t agree more. The latest story — that bailout recipients are using our tax dollars to lobby for MORE bailout money — is the last straw. We’ve set up a petition to tell Congress to put an end to this immediately – will you sign?
http://snipr.com/itsgottastop
thanks for sharing in our disbelief,
Matt
Matt, thanks for coming to my blog and commenting… please continue. YES! I will sign your petition. Send me some details and i’ll put up a post about it too. Thanks… power (back) to the people. The war is on folks… don’t sit on the sidelines!