That's not quite how Alan Blinder describes Henry Paulson. His characterization is worse, although not actually specified. As we know, Paulson has changed direction on a dime and actually you can understand why he has done some of this since we are in uncharted waters. However, Blinder reminds us that the FDIC is doing more for the mortgage market than Treasury is. Although the TARP was passed with the intent that it would buy up both troubled mortgages and troubled mortgage-backed securities, it has not done so as it has switched to recapitalizing banks. But Paulson has given most of the first tranche to the banks while retaining very little control over how the money is spent and also getting a lower dividend than Buffet.
Blinder is not alone in his concern. See this GAO report. Maybe the Congressional Oversight Panel will have some answers as to where the money went.
No comments:
Post a Comment