Posted 4 years ago on Aug. 3, 2012, 1:08 a.m. EST by gsw
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Neil Barofsky, special inspector general of TARP from December 2008 to March 2011."
NEIL BAROFSKY: If we don't change our ways, if we don't do something about the size of these banks, we're going to end up in another financial crisis.
NEIL BAROFSKY: I don't think it; I know it's going to happen, if we don't stop this. Risk is going to pile up in ways that we don't even imagine, and it will blow up again.
Although TARP did meet one primary objective: prevent the entire financial system collapse, other objectives: helping Main Street institutions and individuals and businesses came short.
Money went to banks no strings attached...essentially piles of money "without instructions whatsoever and sort of this hope that somehow or other they use the money to achieve the policy goals of the administration. Of course, that never happened..."
The banks are now 20 percent to 25 percent bigger because of government policy that saw problems with too-big-to-fail banks and decided to make them even bigger.
NEIL BAROFSKY: This is exactly the problem. This is where the financial interests have captured the governmental institutions.
The biggest disillusionment was seeing how our elected officials and our appointed officials would put the interests of the giant financial institutions, the banks, banks that they had previously worked for, or banks they hoped to return to go work for once again, over the interests of struggling homeowners and over the interests of the broader economy.
It's a problem that our leaders -- and these were Democrats and these were Republicans -- all catered to the interests of financial institutions over that of the American people. That transcends politics.
Homeowners were given little help, just 800.000 of 4 million originally targeted.
On August 2, 2012 PBS "The News Hour" featured Neil Barofsky, special inspector general of TARP from December 2008 to March 2011. "
Making Sen$e of Bailouts: Why the U.S. Government Bought 'Troubled Assets'
Your book is just as much about dysfunction in Washington as it is about TARP. What did you find are the implications of that dysfunction when it comes to effective oversight?
It’s pretty hopeless. Unless you recognize the flaws of our system and how fundamentally broken our system of regulation is, it’s going to remain hopeless. …
Fundamentally we have, on the one hand, the corrupting influence of the megabanks, which have to be broken up. They have such a corrupting influence because of the power, their size, their economic might and also because of the corruption of ideology because of the revolving door. So many of the Treasury officials come from the Wall Street banks they’re supposedly regulating. So that’s part of the fundamental problem.