From 2007 through 2009 Mortgage Blues reported on the subprime crisis. Daily articles highlighted a nation in turmoil as financial greed and abuse rocked the country.
In an article by JON HILSENRATH that appears in the Journal, we note that World Bank President Robert Zoellick questioned the wisdom of giving the Federal Reserve more power over banks, as the Obama administration has proposed.
This is terrrible, ironic, and unfortunately it is still required. Years ago this proposal would have saved people from HSBC Finance, Citifinancial, and many others. Needless to say this decision is many years too late:
The SEC claims to be awake and actually doing something. The U.S. Securities and Exchange Commission expects to file additional subprime-related enforcement actions and has dozens of “very active” investigations underway, an SEC official said on Friday. Will this result in questions the SEC does not want to answer? Only a few days after Washington told the SEC they “failed miserably in their mission” the SEC has a brilliant idea, if doing something is to be believed.
It is time for a review of where our taxpayer dollar went, aka the TARP program. We don’t even want to discuss Hope Now and other tries at solving a problem with no solution. But, you say, there is a viable solution. Perhaps, but the greed that got us into this must be followed by a second round of greed. After that we might – just maybe – solve the problem. Of the $188 billion paid out by TARP, a corresponding $1.6 billion went to executives of the 116 banks that took money so far.