Obama Coddled the Bankers
by Deacon Blues
The Obama administration, and specifically his first Treasury Secretary Tim Geithner were in the tank for the nation’s banks. Even though the Troubled Assets Relief Program (TARP) was created under Hank Paulson on George W. Bush’s watch, most of the regulatory and enforcement actions in the aftermath of the great recession were a creation of the Obama administration and his economic team. And their record in holding the nation’s banks and financial institutions accountable for their roles in crashing the mortgage and financial sectors is damn near criminal.
Don’t believe me? Then why are the largest Wall Street firms like Chase and Goldman Sachs getting a slap on the wrist, while Geithner’s Treasury Department made sure that Fannie Mae and Freddie Mac were never allowed to retain their post-bailout profits? You could argue that both agencies had no right to any “profits” after they were bailed out by the taxpayers, except that both agencies had already paid back their bailouts at the time Geithner secretly changed the bailout agreement to siphon off new profits that could have been used by Fannie and Freddie to recapitalize and get back into the mortgage market, and help eliminate the housing debt overhang that still dampens the economy to this day.
Instead, Wall Street got what it wanted: a crippled Fannie and Freddie no longer freely able to compete with private lenders, no HARP programs that actually required the private lenders to help millions underwater on their mortgages, and of course no perp walks for bank CEO’s.