Green Room

TARP, Barney Frank, & Corruption; Update: Geithner- The Fox Guarding the Henhouse?

posted at 9:02 am on April 26, 2009 by

Donald Luskin, contributing editor for NRO, wonders “is TARP a criminal enterprise.”

TARP Looking More Criminal by the Minute takes an in depth look into the web of corruption that could reach to very high places.

What originally prompted my friend Larry Kudlow to ask if TARP is a criminal enterprise was Wednesday’s report to Congress by TARP’s special inspector general, Neil M. Barofsky, in which it was disclosed that “nearly 20 preliminary and full criminal investigations” are underway, including “large corporate and securities fraud matters affecting TARP investments, tax matters, insider trading, public corruption, and mortgage-modification fraud.”

For example, Barofsky says he’s doing an “audit” to respond to reports that “external parties may have sought to influence decision making by Treasury or bank regulators in considering and deciding on applications for funding” from TARP. Perhaps this refers to the controversy that surfaced last January when it was said that Barney Frank (D., Mass.), the powerful head of the House Financial Services Committee, intervened to get TARP funding for a favored constituent, Boston’s OneUnited Bank. According to the Wall Street Journal, “Mr. Frank, by his own account, wrote into the TARP bill a provision specifically aimed at helping this particular home-state bank. And later, he acknowledges, he spoke to regulators urging that OneUnited be considered for a cash injection.”

Or is it the matter of the Treasury’s role in Bank of America’s acquisition of Merrill Lynch? Barofsky says he’s “auditing” that “decision making process” too. For months now that acquisition has been shrouded in controversy. It was completed at year-end, even though BofA discovered that Merrill had suffered horrible losses in the fourth quarter, far worse than anything expected when the acquisition was first announced in September. Andrew Cuomo, the attorney general of the state of New York, has been investigating why large bonuses were paid to Merrill employees before the deal closed, and why the large Merrill losses weren’t revealed to the public until January.

Read the entire aritcle folks, and be sure to read the links provided within the piece. We, the people, must spread the truth on our own, as the MSM will only provide cover for such actions. The days of the so called MSM acting as watch dogs for the people ended years ago. We are on our own, which is exactly why those in power of our government are busy trying to plot a method that will eventually take away our ability to spread such information.

Exit question: Could it be that what we are witnessing coming from the sacred halls of Congress, is in fact the largest act of organized crime ever established?

Update: More on this from Larry Kudlow at NRO, and this from Powerline

What conclusions can we draw? 1) The government’s $3 trillion and counting TARP program represents the greatest opportunity for sharp operators to profit at taxpayer expense in history. 2) The Obama administration is either in favor of giving Wall Street sharks this opportunity or, at a minimum, doesn’t much mind doing so. (If this seems odd, remember where Obama got the biggest chunk of campaign contributions in 2008.) 3) It may be that the TARP complex of programs is the beginning of a national-socialist type takeover of the financial services industry by the federal government. Thus, 4) we can only hope that this turns out not to be the case, and TARP is only the biggest–and perhaps, by the end of the day, the crookedest–waste of taxpayer money in history. Finally, 5) so far the only person or organization who appears to be looking out for the taxpayers is the Special Inspector General. We will be reading his future reports with great interest.

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barney frank corrupt next thing you know they will be calling ted kennedy a drunk

wade underhile on April 26, 2009 at 9:15 AM

wade underhile on April 26, 2009 at 9:15 AM

I think the bigger story here is TARP, the Treasury Dept., and the other players who haven’t been discussed much until now.

Keemo on April 26, 2009 at 9:24 AM

Smaller banks, and a few larger ones, that were solvent are now working overtime to give back TARP funding.

The bottom line is indeed federal control over banking in America, and refusing to address the underlying causes for the financial collapse. This is where Barney Frank, Chris Dodd, and the rest of the crew of bandits can be found.

But PC has effectively prevented honest inquiry as to the actual origins of the problem, thus, by deflecting blame on Wall Street “fat cats” the Administration has sealed any attempts to determine in finite terms why Congress, and previous Dem Administrations, pushed this Ponzi scheme on America.

coldwarrior on April 26, 2009 at 11:11 AM

TARP I was passed when? last September? and already 20 criminal investigations? remember when obama said he was pulling FBI investigators from DHS & putting them on bank fraud & other white collar crime?

is this a sting? it is really strange.

kelley in virginia on April 26, 2009 at 3:17 PM

The whole criminal enterprise was “necessary” to save Citigroup. That is the real story that needs to be told someday.

rockmom on April 26, 2009 at 4:38 PM

rockmom on April 26, 2009 at 4:38 PM

Very interesting rockmom… Would you be willing to elaborate on that angle some more. It appears that several different criminal acts have taken place, with the involvement of many “high ups” in government. Every angle of this story needs to be told, and it’s going to be up to people like us to do the reporting, as the MSM only seems to exist to provide cover-up.

Keemo on April 26, 2009 at 4:59 PM

Both Legislative branches seem so cavalier towards corrupt behavior that it appears that they have lost complete sight of the meaning of the word. It’s just a way of life and to be expected. Been dishonest so long it looks like honesty to them. They no longer recognize the difference. Do not see any light at the end of this particular tunnel though.

jeanie on April 26, 2009 at 8:23 PM

jeanie on April 26, 2009 at 8:23 PM

I must admit jeanie, it’s big time depressing. The only hope I have comes in two forms. Investigations into this behavior by institutions that were put in place to handle such scenarios, and the citizens coming together with enough power to force change in the way our political establishment conducts business. The recent Tea Party’s brought a ray of hope into my home. I can only hope that the Tea Party’s were just a beginning to a movement that will become much larger, louder, and will continue to gain momentum. Our entire political establishment needs to be reformed, with strict rules and procedures outlined. Our media is being re-shaped I believe, and thank God for that.

In the meanwhile, it sure is good to have places like this where we can communicate and vent…

Keemo on April 27, 2009 at 7:21 AM

I’m praying that the 7/4 Tea Party was just the FIRST shot across the bow and than momentum will only increase. This is the way I see things, though I’m probably wrong.

Hard left/rightwing activists will continue to frequent those web sites that support our views. Prior to the ’08 election, the moderates got their news by accident (Yahoo, CNN, MSNBC) and believed most of what they read. My observation, during and after the ’08 election was, alot of people began questioning their news sources. What they were hearing and reading didn’t coincide with their guts. I talked about politics with a few people at work throughout the years and they know I follow things closely. As the election drew closer, I had people approaching me talking about obvious bias they were seeing on CNN. They said they’d never noticed before, but that it was glaringly apparent, especially during the debates and the talking heads afterwards. My stepson, a raging liberal, even mentioned that he learned one thing during that election – you can’t believe anything the media prints.

So, I think that people who don’t normally take notice of politics and politians, are now beginning to sit up and pay attention. Not the same amount of attention we do, but at least they’re starting to ask questions.

Whether politicians acknowledge us or not, is irrelevant. What’s important is that they are scared of the tea party movement. When people move away from the computer and phones and take to the streets, they have to take notice. Its consequences will affect them directly.

I think alot of people were amazed at the number of people who showed up 7/4 and regretted missing it. Now that people saw all those who came out on 7/4, they’ll make a special effort to be a part of the next one.

The reason Washington has become the cesspool of corruption it is, is because the people have never held them accountable. The sleeper(s) are awakening. Thank God.

SoldiersMom on April 29, 2009 at 6:22 PM

SoldiersMom on April 29, 2009 at 6:22 PM

Good to see you roaming the green room soldiersmom! Always a joy to read your comments…

I’m hearing a lot of chatter about the 4th of July, protests, and lots of energy. This is really good news, as 4/15 means little if we don’t continue to fight this battle. We got Obama’s attention, now we need to keep the pressure on. From what I can tell so far, 4/15 was not a one time shout out. I know the planning has begun here in Montana. I believe this grassroots effort is the real deal, a fight for the survival of the America we grew up in.

Best to ya…

Keemo on April 29, 2009 at 6:44 PM