Bailed-out banks eye toxic asset buys: report
So they are using TARP money to buy up each others’ toxic assets. They get the TARP money because they HAVE toxic assets, so they use it to buy MORE toxic assets, swapping their toxic assets with the ones they buy from.
Question, what if THESE toxic assets – the new ones they are trading theirs for – are … well … toxic assets? Does this then justify a whole new round of bailout money?
And why could this turn me into a Republican?
Spencer Bachus, the top Republican on the House financial services committee, told the paper that he would introduce legislation to stop financial institutions “gaming the system to reap taxpayer-subsidized windfalls.”
Bachus added it would mark “a new level of absurdity” if financial institutions were “colluding to swap assets at inflated prices using taxpayers’ dollars,” according to the paper.
Actually, no it couldn’t turn me into a Republican, but still…. if this is allowed to happen it really is pitchforks time.