It Turns Out TARP Is Making Things Worse

Why do I have the feeling that TARP and Stimulus are being used as slush funds for Obama and his minions. Or maybe I am too suspicious.

The problems that led to the last financial crisis have not yet been addressed, and in some cases have grown worse, says Neil Barofsky, the special inspector general for the trouble asset relief program, or TARP. The quarterly report to Congress was released Sunday.

The government's bailout of financial institutions deemed "too big to fail" has created a risk that the United States could face a worse fiscal meltdown in the future, an independent watchdog assigned to review the program told Congress on Sunday.

The Troubled Assets Relief Program, known as TARP, has not addressed the problems that led to the last crisis and in some case those problems have festered and are a bigger threat than before, warned Neil Barofsky, the special inspector general at the Treasury Department.

"Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car," Barofsky wrote.

Barofsky wrote the $700 billion financial bailout has encouraged more risk-taking because bank executives, who are still receiving massive bonuses, figure the government will come to the rescue the next time they steer their ships nearly aground.

"The market mentality now seems fixed that the U.S. government will continue to step in and bail out giant financial institutions," said Sen. Susan Collins, R-Maine, ranking member of the Senate Homeland Security and Governmental Affairs Committee. "The IG's findings confirm my decision to oppose releasing $350 billion in TARP funds last year and my recent vote to terminate the program altogether."

More here.

ACORN to Oversee America's Finances in TARP II?

From Michele Bachmann's website:
Bachmann: House Preserves ACORN’s Role in TARP II
Washington, D.C., Dec 10 -

(Washington, D.C.) U.S. Representative Michele Bachmann (MN-06), member of the House Financial Services Committee, made the following statement after the Democrat Leadership denied the entire House an opportunity to vote on her amendment to prevent ACORN from participating in the Consumer Financial Protection Agency’s Oversight Board. The Consumer Financial Protection Agency (CFPA) is an expansive new government bureaucracy with far-reaching powers to make decisions for consumers about the kinds of mortgages, small business loans, and other financial products they may access. The Oversight Board will be tasked with advising the Agency’s director on strategies and policies.

“An organization that has repeatedly shown an inability to adhere to even the most basic standards of ethics should not have a role in overseeing our nation’s financial system,” said Bachmann. “By rejecting consideration of my amendment, the Democrat Majority protected ACORN instead of American taxpayers and investors.”

In recent months, the IRS, U.S. Census Bureau, and Congress have taken numerous actions to sever ties with ACORN. In fact, less than two months ago, the House Financial Services Committee accepted another amendment offered by Bachmann that would prevent ACORN from serving on a similar board established in the exact same bill under consideration this week.

“There is a clear consensus amongst the American people that ACORN is unfit to receive federal funds and partner with federal organizations. The Democrat Leadership’s decision today robs Congress from having the opportunity to take an up-or-down vote on my amendment and keep ACORN out of our financial markets,” said Bachmann.

Hat Tip Gateway Pundit.

Cartoon via Reaganite Republican Resistance.