A couple of bums fighting over the taxpayer's wallet...
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Andrew Frye of Bloomberg has a devestating piece out today that highlights testimony Warren Buffett gave to the Financial Crisis Inquiry Commission (FCIC) earlier in the year about how taxpayers will always be on the hook for Too-Big-To-Fail institutions. Buffett told the Commission:
- “You will always have institutions that are too big to fail, and sometimes they will fail. We still have them now. We’ll have them after your commission report.”
As Frye points out, this sits squarely at odds with assertions from the Obama administration that the Dodd-Frank financial reform bill ended TBTF once and for all. We've even got video proof from the Obankster himself.
Debt, Lies and Wall Street Bailouts...
Video: Obama pats himself on the back for the passage of the Dodd-Frank Financial "Reform" bill, saying there will be no more Wall St. bailouts
The clip starts playing automatically at the 3:40 mark...
- "Because of Financial Reform, the American people will never again be asked to foot the bill for Wall St's mistakes."
- "There will be no more taxpayer-funded bailouts. Period."
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Buffett Tells FCIC It's Powerless to Stop `Too Big to Fail'
by Andrew Frye (Bloomberg)
Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., told the Financial Crisis Inquiry Commission that taxpayers will always be on the hook for collapses at the biggest U.S. companies.
“You will always have institutions that are too big to fail, and sometimes they will fail,” Buffett, 80, told the FCIC in a May 26 interview, according to a recording released by the panel yesterday. “We still have them now. We’ll have them after your commission report.”
The Dodd-Frank financial reform act, enacted in July, was touted by President Barack Obama as a means to ending bailouts and protecting taxpayers from firms that are “too big to fail.” Federal Reserve Chairman Ben S. Bernanke, who made more than $3 trillion of assistance available during the crisis, has said the “too-big-to-fail” issue can be eliminated only when investors believe the U.S. won’t rescue firms.
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Buffett: "Get down on your knees and thank the Lord for Ben Bernanke..."
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Further Reading...
- Simon Johnson: Dead On Arrival - Banks Win, Wall Street Reform Fails, Obama & Geithner Deserve Blame
And don't forget this one...