The TARPinator
As unemployment rates rocket past 12 percent in some states, taxpayers can be heartened by the work of Neil Barofsky, special inspector general of the U.S. Troubled Asset Relief Program. His job is to examine records of banks accepting federal monies for distortions and malfeasance or simply, which firms were cooking their books to get federal help.
To qualify for the $700 billion in Treasury help already disbursed, banks were required to show need, but also demonstrate that their operations and assets were fundamentally sound. This, according to the Financial Times, could have lead to misstating bank assets and liabilities. “I hope we don’t find a single bank that’s cooked its books to try to get money but I don’t think that’s going to be the case,” said Mr Barofsky.
Borofsky is also worried about government asset-backed securities loans, or TALF monies, used to encourage investors to buy distressed assets from banks, may place taxpayer money behind fraudulent mortgages. He also believes the triple-A ratings given many mortgage-related securities were absolute rubbish.
God’s speed in your work, Mr. Borofsky. The public will depend on you, as well as many private-sector lawyers, to hunt down those responsible for bringing the U.S. economy to its knees. All needed now is a change of heart from the reluctant Germans and Chinese to employ their account surpluses to help jump start the global economy and a real healing will be underway.
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