Fire That Elected Official Right Now

Posted: June 3, 2009 in Technology and Business
I was listening to the business radio as I was driving this morning.  I heard an exchange between Ben Bernanke and some hopefully soon-to-be-fired elected official.
The exchange went something like:
     "… the TARP funds are starting to get repaid… with interest, of course… and the warrants associated with these TARP loans should provide a nice upside for the U.S. taxpayer."
     "So, Chairman Bernanke, many people say that the total cost to the bank of those loans, including the warrants, will be excessively onerous."
     "Uhm… hmm… well… er… "
Bernanke was –as was I — stunned when he realized what this hopefully soon-to-be-fired elected official was actually suggesting:  That the U.S. taxpayer should somehow not make a return on our investment commensurate with the risk we had taken with the loans in the first place.
In other words, make the TARP loans actual kick-backs to banks.
Bernanke recovered in short order, saying something like: 
     "Please remember that these banks were in danger of going out of business.  We taxpayers provided loans to avert that, and it’s only reasonable that if the banks then went on to improve, that the U.S. taxpayer should share in any appreciation from that point forward with the banks.  Blah, blah, blah."
I was too stunned to even hear the rest.  This elected official is the last person in the entire world that I want to have watching out for me.  My only regret is that I didn’t catch his name… and I can’t find the text or tape of the entire proceeding, only Bernanke’s initial statement.  Ugh!

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