You probably thought that since banks’ collective butts were pulled out of the fire by taxpayers handing over billions in TARP funds, things would be different. Surely, you may have surmised, the banking industry would now be a new, friendlier, more humble business that would get back to the business of providing enough credit to keep the economy going. BWA-HA-HA-HA-HA-HA-HA-HA! You fool! Not a freakin’ chance! Don’t feel bad — in my more optimistic moments, I was one of those fools, too.
The news didn’t get much play, but recently, Neil Barofsky, the “overseer” of banks’ use of TARP funds, reported that most of the banks who received the funds — money which was supposed to be used to increase those banks’ lending — have instead used most of the money to gobble up smaller banks, repay debts, or make huge investments. Barofsky then told the Treasury Department that they should, pretty please, require detailed information from the banks on how the money you and I gave these weasels was being used. That’s the least the beneficiaries of TARP funds could do, right? I mean, you can’t expect these high-rollers to be threatened with jail sentences or anything just because they’re some the biggest thieves in history. Well, if that’s what you thought, you’re dead wrong again.
Late last week, the Treasury guys essentially told Barofsky to take his idea and shove it, providing another demonstration of just how deeply banking interests have burrowed into the workings of government. Unfortunately, a reluctance to get tough with the people who nearly drove the world’s economy off a cliff has, so far, been a hallmark of the Obama administration — much to the dismay of the people who worked hardest to get him elected, i.e., progressives.
If that’s not bad enough, these same financial hoodlums are now leading the charge against Obama’s plan to (finally!) create a special financial regulator to protect consumers from banks’ shadier practices. Alternet has a detailed story on this latest treachery from our good friends in the banking racket, um, business. On that note, have a good week, and good luck.
This article appears in Jul 14-21, 2009.
