Ratigan Asks Important Questions In Advance Of Tomorrow's Bank Of America Congressional Hearing
Ahead of tomorrow's Committee of Oversight and Congressional Reform hearing on the Bank Of America - Merrill Lynch strong-arming by the Fed, entitled "Bank of America and Merrill Lynch: How Did a Private Deal Turn Into a Federal Bailout? Part IV" (which may or may not happen), Dylan Ratigan discusses some salient points with California Republican Darrell Issa. As a reminder, prominent witnesses tomorrow will be BofA GC Tim Mayopolous and Directors Charles Gifford and Thomas May.
Ratigan asks some important questions: "Why trillions of dollars in US taxpayer money are given to casino gamblers to do whatever they want with and then it is used for political purposes...Why America's taxpayer money is being used to subsidize casino gambling as a lifestyle and why Larry Summers, Hank Paulson and Tim Geithner were able to do that."
And here is some clarification for CNBC anchor Caruso-Cabrera on why the prosecution of misdeed at Bank of America is just a little bit more than AG Andrew Cuomo trying to get a few swing votes.
Ratigan: "The bank CEO knows what going on, the bank CEO knows it's ok for you to take a trillion worth of risk knowing he only has $50 billion in the basement that is taxpayer sponsored. That is the crime is it not."
Darrell Issa: Directors and officers of a company have a fiduciary obligation to the stockholders and that's what the basis for the SEC settlement was, it's the reason the judge wants to see more disclosure: these people had an obligation to disclose honestly to the stockholders. They appear both not to have disclosed honestly, and then covered up even additional events. Unfortunately they seem to have covered it up with the aid of Secretary Geithner, Secretary Paulson and others, and that's really what we have to get to the bottom of. We can't have government blaming greedy corporate America and then being conspirators just because it serves their best interest.
And some words of warning for Tim Geithner:
"The fact that Geithner is now in the cross hairs is causing people to say "oh wait a second, that is too close to President Obama" but the truth is President Obama is better jettisoning Geithner if he did wrong before he had this job, than he is going along with him as he becomes discredited when he says TARP money is important.... TARP money is slush money... it is campaign money."
We also enjoin Darrel Issa's call for readers to approach their elected officials
to finally get to the bottom of this debacle before it is too late, and
everyone has forgotten we were on the verge of a precipice and nothing
changes until the next time the bubble pops and takes all of America
with it. Indeed, this is not a left/right issue, it is a right/wrong issue.
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