Monday, April 6, 2009

Like That Will Ever Happen -

Here is a quote from Elizabeth Warren, the chief watchdog of the TARP funds. "Firstly, the banks must have confidence that the valuation of the troubled assets in question is accurate; then the management of the institutions receiving subsidies from the government must be replaced; and thirdly, the equity investors are always wiped out."

So far I see none of those things happening. And before anyone asks - yes, I am totally uncomfortable with the government removing CEO's from their positions of leadership within a private company. I am more uncomfortable with taxpayer money being involved in the first place.

And as for equity investors being wiped out.... I'm still waiting to see that happen. For that matter, the bondholders shouldn't be very comfortable either. (That last link went to the Huffington post. I threw up just a little bit putting that link in there, but I agree with it)

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