The ‘Waxman Letter’

Posted on October 29th, 2008 in Daily Mortgage/Housing News - The Real Story, Mr Mortgage's Personal Opinions/Research

Blow back from the lack of controls on the $700 billion TARP bank bailout is intensifying following Nocera’s New York Times story .  In this great story, he has found the smoking gun proving Chase has no intention of expanding lending, rather using TARP money to acquire other banks and plug holes in its balance sheet.

Today, Rep. Waxman sent a short and sweet letter to Jamie Dimon and the eight other favorite children banks regarding their $108 BILLION in bank compensation and bonuses to be paid this year. He simply wants to find out whether the tax payers $125 billion injection will be funding these nine bank’s bonus pools for the worst year for the financial sector in history.

I still think that TARP may change considerably in the coming weeks where this tax payer hand out does have some strings attached. At present, it is a blank check for Paulson and the banks. -Best Mr Mortgage

When you are at it, read Noe Nocera’s story on the bailout: So, When WIll Banks Give Loans?

8 Responses to “The ‘Waxman Letter’”

  1. The whole bonus structure of this industry is incedible. What makes it really bad is that the tax payer is subidizing the worst year ever in their history by making sure they get their bonuses!! Everyone of the congress people that voted for the bailout bill of theft should be ousted from office. Better yet, convicted of treason.

  2. GO HENRY!!

    You are one of the only people in Washington asking the questions and demanding accountability!!

    We need to know where every penny is going!

  3. What amazes me is the arrogence of these people. They aren’t even trying to cover this one up! They have no intention of useing the taxpayers money to get lending moving, just more capital for a possible M & A with whoever?? Investment capital if you will with enough left over for (mis)management bonuses….unf*&king believable!! This is pure corruption …in your face.

  4. 5755hsa, and your surprised why? This was never a bill designed to help and assist home owners from the very beggining. This was a simple “Bail Out” of the most influential and largest campaign contributors this country has ever seen. Paulson himself is one of them from the good old boy network and so are others in Washington today (Pelosi, Frank, Dodd, et al). Who do you think they intended to help and assist? Joe 6-pack on Elm St. or those on Wall Street? This was a sham and so are most of the efforts Paulson and Bernanke are undertaking. They are a couple of incompetent fools and so are most in Congress for allowing the fox to guard the hen house.

    Let’s get real here people… those in Washington serve themselves and toss us here on Main St. a bone every now and again. Sure we have food stamps, free health care for illegals, welfare, heat assistance etc. but is it really free? Off course not! People think it is because they don’t think they have to pay for it. Well they do, but many do not monetarily.

    They pay for it because they can’t get a job for example because that company that was hiring can no longer afford to pay any new employees due to the new taxes that they are now paying so that very same applicant is able to get food stamps. A self fullfilling prophecy of sorts. The you can’t have your cake and eat it too scenario.

    The more taxes the less workers, the more give aways the more hand outs for them, the more you allow people to become dependent on you the more people will line up for hand outs. You do not build an economic engine through give aways and freebies at the cost of those very same people that are getting the handouts and more importantly the very people who could have helped those same folks if not for the taxes they are paying. That stalls growth and causes a hoarding of cash by those that have it. Ironically that is what is playing out with our banking “Bail Out” right now. Those that got the hand outs are hoarding the cash as most would given the same situation. Hello? What did people really think would happen? This was your classic DOA bill!!! The problem is we have had too many of them too often abd ALL OF THEM at TAX PAYER EXPENSE!!!

    One Day – One Vote!!!

  5. MM, Have you seen this foreclosure website for Countywide?:

  6. Stu; I agree with you on all points, the part I found so shocking was the fact that they (the banks) aren’t even trying to put on a facade that suggests what the bill should provide.I know that they are all corrupt and in bed together, that’s how politics works these days.
    What really astounds me is that people have not risen up with “enough already”. I bring to mind the protests of the 60’s and 70’s, re: the civil rights marches and the Vietnam war. I think although this situation is slightly different, it warrants as much importance and alarm. Seems to me there is still much complaisancy and no real outrage. Total rape of the financial system, with a stamp of approval.

  7. What I don’t understand is why Waxman would even waste his time writing this letter. We all know first off that Bernanke and Paulson can spend this bailout money any way they choose so this letter will find itself in Paulson’s shredder. Mr. Waxman’s attempt to stop this will be futile, he is not a powerful enough person to stop this. If anything Waxman wrote this letter just to look good at election time hoping to keep his gravy train running. If he felt so strongly about this whole thing he should have fought harder before it was passed.

    Everyone has to realize what country we are in. The United States has been a socialist country for almost 80 years, people like Mr. Waxman haven’t received this memo and still believe this is a democracy. Bernanke and Paulson are the leaders of this country. The senators, congressmen and the President are merely useful idiots bought and paid for and not working for the people, they’re working for the bankers. Why get depressed watching our economy crash when you might as well accept your fate and understand you are going to be raped and your retirement plans are going to be destroyed.

  8. Why prop up a failing business? There are banks in this country that do not have the bad paper & mangement that got us into this mess.

    Wouldn’t it make more sense to rebuild the banking system from these solid banks? A solid foundation, slow as it may be b/c of the small number of banks, injected capital will be loaned towards good not reckless uses.

    BTW, Who will finance the bulk purchase of pitchforks and torches…and some tar?

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