Friday, August 7, 2009

Status of Fixing the US Financial System

Excerpt - Talking to George Stephanopoulos last week, Tim Geithner bragged about the success of the bailout: "We've already earned about $6 billion for the taxpayer on those investments." Sounds great -- unless you consider the fact that we've we actually "invested" $4.7 trillion in our bank bailout. Shouldn't we demand to know what happened to the remaining $4.694 trillion?

Reforming the credit-rating agencies, to avoid ratings shopping by financial institutions and the fundamental conflict of having rating agencies be paid by the companies they are rating -- no wonder so much junk got AAA ratings -- got a hearing in the Senate yesterday, but we may not see action on this
until next year.

Legislation to reform executive pay
passed the House last week. The need for this reform was highlighted … Read more (by Arianna Huffington, Huffington Post, Aug. 6, 2009)

FK Comment

While the reform window closes, unfortunately, another collapse appears to be inevitable. Yes, the AAA rating system is still junk. I agree, we should demand what happened to the remaining (yet roughly) $4.7 trillion which US taxpayers spent on the bailout. (HuffPost profile/comments)

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