30
Jan
13

Bailout stuff

I’ve been listening to a lot of chatter about bank stuff lately. It seems that again the narrative has been strengthened that we did nothing to make banks do anything to change their ways after 2009 and that our strategy with them going forward is still nonexistent. I heard on the radio the other day that the implicit guarantee of too-big-too-fail status gives large banks in the U.S. a .5% advantage on access to capital compared to smaller banks.

Here’s a new report from the auditing arm of TARP explaining how federal taxpayers are still on the hook for one part of the auto bailout with GMAC. Treasury never asked this entity to provide a plan for how it would pay loans back (as it did with Chrysler for example). Surprise surprise, they owe taxpayers about $14 billion and we own most of their garbage company.

http://www.sigtarp.gov/Audit%20Reports/Taxpayers_GMAC.pdf

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