Given the breadth and depth of bailouts last September, it should come as no surprise that some of the conditions of the rescue packages were unclear to both parties. Take, for example, the support for forthcoming regulation that was apparently expected of banks in exchange for taxpayer dollars. Repayment of principal and interest is nice and all, but the real debt repayment was buried somewhere in the implied fine print.
Banks receiving aid are "literally going and fighting the very type of regulations and reforms that are necessary to prevent, again, a crisis like this happening", Chief of Staff Rahm Emanuel said on CNN's "State of the Union" yesterday.
While there is more than a hint of biting the hand that feeds, it's not as though every single financial services organization was on the verge of being Lehmanized and needed to be TARPed. You'd think firms that were better positioned to withstand the economic hurricane would have a right to speak there minds. Just don't tell that to Larry Summers.
"There is no financial institution that exists today that is not the direct or indirect beneficiary of massive taxpayer support for the financial system," Summers said in remarks to a conference sponsored by the Economist magazine.
Including the US Treasury. Or would Timmy G like to have that one back?
Obama, Advisers Fault Rescued Banks for Opposing Rules Revamp [Bloomberg]