No Tough Love for Wall Street
What an insipid anticlimax! Rising to “a challenge more complex than our financial system has ever faced,” Treasury Secretary Timothy Geithner promised on Tuesday to give trillions more to the very folks who profited from that malignant complexity. For all the brave talk about transparency and accountability in the banking bailout, he gave the swindlers who got us into this mess yet another blank check to buy up the “toxic assets” they gleefully created.
According to the Congressional Oversight Panel created by Congress to monitor the bailout, the Bush Treasury Department overpaid by $78 billion of our money in the first 10 purchases of those assets. Yet Geithner tells us “Congress acted quickly and courageously” in throwing that money at Wall Street without requiring any accountability. At the same time, there is still no commitment to directly help what Geithner admits are the millions of homeowners already foreclosed out of their homes, with millions more to come. The leaks from Treasury promise that $50 billion will eventually be allocated directly to helping homeowners, which is a day late and a dollar short in chump change compared to the trillion dollars that Geithner on Tuesday committed to the purchase of more bad bank debt.