The truth about TARP
Insider account of the bungled bailout
- Duration 4:38
- Date Jul 28, 2012
Insider account of the bungled bailout
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Welcome back the truth come -- to harm the guy in charge of policing the Obama administration's bank bailouts as Treasury Secretary Timothy Geithner through tax payers under the bus and he's revealing all the details in his new tell all book.
-- inside account of how Washington abandon main street.
While rescuing Wall Street author and former special inspector general.
In charge of oversight a TARP -- Borowski is here to explain good to see you sir thanks for having me good morning fascinating book peeling back the curtain a little bit.
You say I hope we see people in handcuffs regarding.
What happen globally in layman's terms are as close as you can why and who should we see in handcuffs.
Plus I'm gonna the most recent of the banking scandals the interest rate fixing scandal that there's been no one of the big banks -- has settled and now there's a sprawling investigation to others.
Hey you know the bottom line is that this is a a fraud of just breathtaking scope I mean there's no more and there's no interest rate more important in the world than the one that was being fixed here.
And finally finally we need to see people in handcuffs people need to go to jail there needs to be some level of accountability when these -- break the law.
Geithner it's now -- need to carry out by the traders and it Geithner is probable but not a criminal sentencing is called culpable because it appears that he was told about.
What was going on back in 08.
And really didn't do anything to stop -- and in some ways.
Even endorsed it by using that fixed interest rate and some of the bailout programs and I was providing oversight for -- -- some -- the bombshells in the book that you talk about Geithner specifically here are some of them will put up on the screen but -- it.
Did Geithner admitted protecting banks over people.
But only three billion dollars went to help homeowners and we thought that this was going to be a massive amount of homeowners to help people with these underwater mortgages they bought and these balloon arm mortgages.
And they were suddenly coming to to problems and the treasury engage in dirty tricks and lies.
So what Washington as usual -- -- -- this is so basically this is a handbook for how Washington lies to us defense at fixing that adds a great way of putting it and and you know I was just a former that was -- federal prosecutors the time I want to watch tonight little experience Washington.
But I really had no idea what I was walking into as really shocked when I saw how much power and control the big Wall Street banks had.
Over government and over the Treasury Department and at every critical juncture as -- When it when it's -- was being Nate was always to pick the banks over over the little guy over the broader economy and over struggling homeowners.
Transparency -- at the heart of all of this in a big back and forth between you and Tim Geithner got very heated going forward.
Who are we to believe how do we fix this problem -- next time around if someone like yourself reveals the secrets.
Are we to ever believe what's coming out of our government.
Look we it's a very unfortunate but we have to be very skeptical about what we -- we have to test.
We have to demand more information transparency was one of the key things I was pushing for because ultimately was my belief that the American people are Smart enough capable enough.
That they have all that information.
They can make their own decisions whether it's a good thing or bad thing I got such push back condescension I was told repeatedly -- people.
Oh they're just not to be able to understand these things when they would pressure me not to report things and yes when I really press Tim Geithner be more transparent about what was going on -- TARP money.
He threw a real tantrum for borrowers -- let's leave -- here with this question which now I'd say 20/20 TARP wasn't success wasn't failure.
TARP was successful in keeping the largest banks from failing to bringing the financial system down with them.
But ultimately it was supposed to do a lot more than just shovel a bunch of money at a bunch of banks and keep them from failing.
It was supposed to help the broader economy and treasury made decisions not to require the banks or incentivized banks to use it to help the economy.
And most importantly it was supposed to help struggling homeowners -- does not pass through congress doesn't get the votes necessary.
There is no -- lot but for the promise to help homeowners on and help deal with that aspect of the economy which is still haunting us which is still why -- in the doldrums.
On and that failure might -- tarps biggest failure ball yes or no we're headed towards another crisis.
We're headed towards -- crisis we don't break up the largest financial institutions the same incentives that drove us into a crisis in 2008.
Will do it again and if we don't think our regulatory system we have a regular 1 -- -- -- incidents that talk about the book you know I was told point blank by very senior treasury official.
That if I didn't change my tone because I was very critical be -- station it was critical Wall Street.
That I was gonna do myself real harm.
And ended -- I played ball that would be great around it's me and that's you know at -- -- today.
That's the same decision they're -- every regulator read the book is called bail -- -- nice to see -- -- thanks for joining us thank you for having great book thanks.