Bernie Madoff’s ponzi scheme cost his clients nearly $65 billion. He’ll spend the rest of his life in prison now.
But every taxpayer should be appalled by what is discovered by TARP Special Inspector General Neil Barofsky regarding the $700 billion federal economic rescue package to banks. The audit finds Mr. Bernanke and Mr. Paulson misled the public about the health of the banks. That’s why the bailout didn’t do much to thaw the credit market and stimulate lending.
Another offense? Forcing banks to accept TARP funds:
Executives at several of the nine institutions said they were reluctant to accept TARP funds – and the strings attached to them – but told auditors that federal officials forced them to take the money.
Officials at Treasury and the Federal Reserve and other federal regulators said it was important that all nine firms accept the money in order to instill investor confidence in Wall Street and to show that the nation’s banking system “can withstand any near-term credit loss.”
Clearly an abuse of power, don’t you think?
Yet they get away with it while taxpaying Americans are on the hook. The books of the Federal Reserve need to be opened and carefully scrutinized. If they have the power to print money and sell America’s debts, shouldn’t the public get to see a clearer picture of its operations?
