Bailout Oversight Panel: Some Banks Still Vulnerable to Collapse
Nearly a year after the $700 billion bailout of the nation’s financial system began, banks—especially regional and smaller banks—are still threatened by the billions of dollars in bad loans on their balance sheets. More could fail if the economy worsens, according to a new report from the Congressional Oversight Panel (COP), which oversees the spending of the bailout funds.
“The Continued Risk of Troubled Assets,” released today, warns that if unemployment rises sharply or the commercial real estate market collapses, the banking system could again nosedive into a crisis.
In the report, the panel says:
The financial system [remains] vulnerable to the crisis conditions that [the bailout] was meant to fix.
Educating Timothy Geithner: The Congressional Review Panel on Capitol Hill
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The American people worry about how their $590 billion in taxpayer money is being spent in the big bank bailout—and, on Capitol Hill today, U.S. Treasury Secretary Timothy Geithner was told why. In his first appearance before the Congressional Oversight Panel (COP), which has spent nearly six months reviewing the expenditures of the Troubled Asset Relief Program (TARP), COP chairwoman Elizabeth Warren told Geithner:
People are angry that even if they have paid their bills on time consistently and never missed a payment, their TARP-assisted banks are unilaterally raising their interest rates or slashing their credit lines….People are angry when they read headlines of record foreclosures because even if they aren’t personally facing trouble with their mortgages, they see their own property worth less and their communities declining as a result of the foreclosures all around them.
I appreciate your repeatedly stated commitment to transparency and accountability…but more remains to be done. People need to understand why you are making the choices you are making.
Banks Need Restructuring, Not Bailouts
The Treasury Department’s bank bailout plan is built on the faulty assumption that the financial crisis is the result of a temporary lack of a market for current financial products—and presumes the losses can be made up after confidence in the system is restored. The reality is that the entire financial services industry needs to be restructured and the sooner, the better, two experts said recently.
Writing at the Campaign for America’s Future website, Susan Ozawa points out that during a recent conference, Damon Silvers, vice chairman of the Congressional Oversight Panel (COP), and economist Robert Kuttner said broader and deeper changes need to be made than the Treasury plan envisions. They spoke April 8 at the “Lifting the TARP: Is a Reconstruction Finance Corporation a Better Way to Restore the Banking System?” conference sponsored by Demos in Washington, D.C.
Citigroup Uses Taypayer Dollars to Fight Workers’ Rights
It seems that another bank on the public dole is using its taxpayer-subsidized time and resources to lobby against the Employee Free Choice Act.
Today, Sam Stein of the Huffington Post reports that Citigroup hosted a private conference call yesterday to bolster opposition to the Employee Free Choice Act that included a senior executive at the U.S. Chamber of Commerce, a business lobbying group that has put tens of millions of dollars into the anti-Employee Free Choice disinformation campaign. Jane Hamsher at Firedoglake notes that the Citi stock analyst who downgraded Wal-Mart over fears of the Employee Free Choice Act passing was on the call, too.
Citigroup, the Huffington Post reports, has received some $50 billion in federal bailout funds—funds that are meant, in theory, to shore up the financial system, not allow Big Business to continue to distort the political process and lobby against critical legislation.
Bailout Oversight Panel Recommends Eight Changes to Avoid Future Crises
The congressional oversight committee examining how the U.S. Treasury Department is spending taxpayer money in the Troubled Assets Relief Program (TARP) to help bailout the financial system says the nation needs smart regulation to help prevent another financial crisis and protect our economic future.
The Congressional Oversight Panel (COP) released a report today, which discusses how regulation would have helped avert the financial crisis and how it can help avoid future troubles.
Dockworkers Ask: Are Your Union Pension Funds Safe?
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| Too many fat cats trying to steal workers’ pensions. |
Jennifer Sargent, Northwest communications coordinator at the ILWU, sent us this from San Francisco.
In the current economic free fall, it’s wise to know where your pension funds are invested and whether they are as safe as you’d think. Union leaders of the International Longshore and Warehouse Union (ILWU) and other union leaders are warning unions about a scheme that cost 60,000 Dutch dockworkers more than $1.7 billion in pension funds that had nothing to do with a sinking economy—and everything to do with a corporate sleight-of-hand.
To highlight the issue, more than 100 international protesters from labor and community groups rallied Jan. 12 at San Francisco’s landmark Transamerica Pyramid building. Union leaders from the ILWU, Teamsters and the Dutch dockworkers’ union FNV slammed the alleged looting of more than 60,000 Dutch dockworkers’ pension benefits by Dutch insurance giant Aegon, the parent company of Transamerica. The big corporation recently launched a plan to collect a huge hunk of cash from U.S. taxpayers under the bailout program but suddenly dropped the scheme last month.
Treasury Dept. Not Looking After Taxpayer Money
President-elect Barack Obama has a laundry list of Bush disasters to clean up after he gets in office, and he says fixing the Troubled Asset Relief Program (TARP) is among his first priorities. Good thing, too, because the congressional oversight committee charged with examining how the first $350 billion of our taxpayer money was spent finds the U.S. Treasury Department isn’t exactly looking after our money. The oversight committee released its second report in recent days, and The Washington Post sums up the findings as follows:
The report says the department has not articulated a plan for restoring lending to consumers. It asks again why the Treasury has refused to spend any money on foreclosure prevention programs. And it says the department is sowing confusion in the financial markets, undermining the stated purpose of the rescue program, by failing to require companies to report how they are spending federal investments of taxpayer dollars.
