Let’s get those rotten big banks! Obama appears for the first time to be making a key presidential decision based on politics rather than his normal, pragmatic reasoning. He decided to take on the hated big banks against the advice of his treasury secretary and primary economic consultant (Larry Summers). Let’s go after those evil doers that survived only at taxpayer’s expense. I reminds of my days at EDS when a big deal went bad. It had 5 stages: the signing, the celebration, reality setting in, the search for the guilty and finally, the punishment of the uninvolved.
Let’s look at where most of the TARP/bailout money went that we won’t get back:
• AIG – an insurance company
• Freddie and Fannie – Pseudo government mortgage lenders that targeted loaning to underserved.
• GM, Chrysler, GMAC – the auto industry
What businesses did the most to help the situation by merging in troubled/guilty companies: JP Morgan Chase (Bear Sterns, WAMU), Wells Fargo (Wachovia), Bank of America (Countrywide, Merrill Lynch)
What companies got TARP money that did not ask for it but the government insisted: JP Morgan Chase and Goldman Sachs
Who is Obama going after: The companies that did good and those that got taxpayer money they didn’t even want.
Oops Obama, this will not serve you well.
No comments:
Post a Comment