Bombshell: Treasury Overpaid $78 Billion For Bank Assets
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The Senate oversight committee chair Elizabeth Warren just dropped a major bailout bombshell in front of the Senate Banking Commitee…that when the U.S. Treasury bought assets from troubled banks in TARP 1, they overpaid by a whopping $78 BILLION dollars. This, sadly, is not a surprise.
“At the time of the first set of transactions, Treasury substantially overpaid. According to the data we’ve investigated, Treasury put in about $254 billion for which it received about $176 billion in value from the financial institutions. That’s a shortfall of about $78 billion when measured as of the date of the transactions, not in terms of what happened to the markets since then . We want to emphasize there may be good policy reasons for overpaying. But without a clearly delineated reason, we can’t know that. We return to a theme that we have spoken about repeatedly, and that is the need for clear goals, for a clear framework, for methods for how we’re getting there and measurements to see if that is happening.”
Spank! Her full report comes out tomorrow… but Senate Dems are saying they may have a vote on the big porkfest today, to try and rush it through before it falls apart…as Obama’s begun a hissy fit. “No Drama Obama” is nowhere to be found, and is probably living in a Kenyan hut with Barry’s brother George.
How could Treasury be so stupid? Easy. The damn “assets” they bought are toxic, because the institutions that hold them are toxic, and NONE of them can BE valued. The derivative “securities” are about as solid as paper air. There is no market for them. 50 percent of all mortgage bonds cannot be connected with their underlying property titles. An overpayment of $78 billion is probably an underestimate. Why, why, WHY do we let these idiots drive? Obama thought everyone would cower under his popularity and roll over. Not happening. The Democrats can NEVER help themselves, and they overreached again. This time, it was in such a massive way that they cannot begin to spin it away. Rest assured we will have more on ALL the drama, as it is flat-out war now.
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