My March 4th Post Where’s The Money ! Federal Reserve Chairman Ben Bernanke was asked, “My question to you is, will you tell the American people to whom you lent $2.2 trillion of their dollars?” Bernanke replied, “No,” Bernanke said the Fed’s lending programs were not gifts or subsidies but rather over-collateralized loans. When Senate Budget Committee, Vermont Sen. Bernie Sanders pressed on whether Bernanke would name the firms that borrowed from the Fed, the central bank Bernanke replied, “No”. And more money was just pumped to AIG’s pockets, March 4th 2009.
Seven months later, October 5th reports are out that Federal Reserve Chairman Ben S. Bernanke and former Treasury Secretary Henry M. Paulson Jr. misled the public about the financial weakness of Bank of America and other early recipients of the government’s $700 billion Wall Street bailout, creating “unrealistic expectations” about the companies and damaging the program’s credibility. This is part of the TARP -Troubled Asset Relief Program- that the government loaned Bank of America and eight healthy financial institutions some $125 million to avoid collapses. TARP Special Inspector General Neil Barofsky stated that senior government officials and Wall Street regulators, including Mr. Bernanke and Mr. Paulson, had “affirmative concerns” that several of the nine institutions were financially shaky. Do you think Bernanke will talk, “No.” Remember he kept silent on $2.2 Trillion $125 million is nothing. Why, Obama and his administration use TARP to advance his own political priorities.
The TARP program, which was originally an emergency piece of legislation aimed at creating financial stability. Obama used $787 billion for bailout funds to advance the administration’s social, economic, and political agenda. Obama will not accept payments from the loans. He wants the institutions to be in debt with the government, you know, once you do a deal with the Devil, there’s no way out. Accept government money, and they own you forever.
Under the Bush administration a prominent and profitable bank, under threat of a damaging public audit, was forced to accept less than $1 billion of TARP money. The money flowed to the bank. Back then the Bush administration was acting for purely economic reasons. It wanted to recapitalize the banks to halt a financial panic. Today, that same bank is begging to give the money back. The chairman offers to write a check, now, with interest. He’s been sitting on the cash for months. The Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with “adverse” consequences if its chairman persists. That’s how Obama works. Obama took the nation from a trillion in debt to over $4 trillion in debt in his first sixty days, with even more federal spending promised, the nation will be $10 trillion in debt before the 2010 mid-term election cycle. Don’t say anything, the Liberals will call you a RACIST.