Today BoA paid back TARP funds so they could pay a new CEO absurd amounts of executive compensation. That leaves Citigroup as the only TARP recipient who has not paid back the money from the $700 Billion.
The New York Times on Citigroup:
it may be difficult for the bank to reimburse the government anytime soon, given continuing problems with troubled assets and loan losses. It also must navigate some tricky tax issues that would accompany any repayment.
Citigroup has been pummeled in all parts of its financial empire, from credit cards and complex mortgage bonds in the United States to exposure to soured bonds in Dubai.
Its problems have resulted in a unique relationship with the government: In addition to providing $45 billion in TARP money, the federal government has agreed to back billions of dollars in soured assets that the bank is trying to sell. In addition, Citigroup was the only TARP recipient, aside from GMAC, to convert government-issued shares into common stock to raise equity capital, giving the government a one-third stake in the bank.
RUBIN'S RUBES!
Matt Taibbi's fantastic article in the latest (December issue) Rolling Stone nails it perfectly.
Entitled, Obama's Big Sellout (although on the cover it is called Obama's Wall Street Sellout), it gives a detailed breakdown how so many members of Obama's economics team are directly related to Robert Rubin, and hence the architect (or one of the main architects) behind the Gramm-Leach-Bliley Act (deregulation of the banksters, insurance and investment companies) and the Commodity Futures Modernization Act.
Does a really formidable job of it.
(Sidebar: Can't help but mention that four of those creatures he mentions also belong to the Bretton Woods Committee -- Diana Farrell (hell spawn), David Lipton, Gene Sperling and Bob Hormats. While Jason Furman doesn't belong to it, a family relative (either his uncle or father) does.
Also, for those not familiar with the Hamilton Project by which a number are related to Rubin (his baby over at the Brookings Institute, where the chairman also happens to be the owner of one of the largest hedge funds on this planet; rated largest in existence for several years running), one of its principal aims is the privatization of social security.
So, if one wants those banksters/insurance fraudsters, etc., to have their own taxpayer-financed insurance exchanges ("Public Option") and their latest carbon derivatives securitization scam (cap-and-trade) all that's left will be funneling those trickle-down social security funds their way.
HISTORICAL FIRST!
Sorry, forgot to mention the most important point of all: Froman, a top guy from Citigroup, continued to stay on as an employee while he helped President Obama put together his team of "Rubin's Rubes."
This, to my knowledge of economic and political history, is the first time a Wall Street type has continued their employment while also being employed by a presidential administration! I didn't even suspect this was allowed under federal law --- unless a national emergency was declared?
well, it sure is what I'm thunkin'
If you want to overview the Article and put it in an instapopulist, that would be great.
I've been writing as such and I try to refrain on making blanket political statements.