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?