Barofsky: "The Market Still Assumes A Bailout..."

Market Still Assumes a Bailout

We are reposting this interview from last Fall in light of recent discussion on ending too big to fail.  Barofsky has a unique perspective on banks and bank fraud after serving as Special Inspector General of TARP for 3 years under Bush and Obama.  He is a truth teller and is not part of the Tim Geithner fan club.  Check out the op-ed below.

"The TBTF banks are 25% bigger than they were in 2008.  If one of them gets into trouble they will tear down the entire economy along with it.  And Washington is going to have to bail them out."

Barofsky's op-ed:

Bungled Bank Bailout Leaves Behind Righteous Anger

Geithner and Barney Frank:

Frank Asks Geithner If Future Wall Street Bailouts Are Legal

Barofsky discussing AIG:

"The 'AIG Bailout Worked' Mantra Is Dangerous, Geithner Is Not Being Honest'

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Here Bernanke tries to tell Eilzabeth Warren the Feds could resolve any one of the largest banks without issue and no more bailouts will be needed.

He also lives in a world of purple unicorns.

Watch it here: http://dailybail.com/home/watch-elizabeth-warren-vs-ben-bernanke.html

Comments

[SKINFLINT]

For the love of God and Country, can't this man run for public office? Once again Mr. Barofsky let's the sun shine in and certainly does not mince his words. Mr. Barofsky, I would like to invite you to my home for Thanksgiving.

[SKINFLINT]

Just wanted to say that Barofsky's assessment of Holder not being sophisticated and timid is way off the mark here. We all know that he has defended these monsters in the past and has an intricate knowledge of how they do business. He is complicit in this fraud and should step down immediately. I am sure that Barofsky was being courteous.

[DailyBail]

The NY Fed also allowed Goldman et al. to keep $35B in collateral on the $62B in CDO's (face value) for which they paid the market price (at the time $27B). In other words, they may have made a "profit" on the $27B they paid for the CDO's, but AIG had already effectively spotted them $35B in unrecovered collateral towards the purchase price.

http://dailybail.com/home/barofsky-on-treasurys-aig-stock-sale-the-aig-bailout-worked.html

Barofsky on AIG Bailout - Good Clip

[DailyBail]

Here Bernanke tries to claim they could resolve any one of the largest banks without issue and no more bailouts will be needed.

He also lives in a world of purple unicorns.

http://dailybail.com/home/watch-elizabeth-warren-vs-ben-bernanke.html

[TR]

We must bailout the TBTF.They are helping the job creators with all the miminum wage,30hr/wk. jobs which will turn the economy around.