Legal Commentary

Guardian: Elizabeth Warren Critical Of The Geithner Way

By Big Tent Democrat

This is an interesting development:

[Elizabeth] Warren, a Harvard law professor and chair of the congressional oversight committee monitoring the government's Troubled Asset Relief Program (Tarp), [will issue] a damning report that will question the administration's approach to saving the financial system from collapse. . . . She declined to give . . . detail[s] but confirmed that she would refer to insurance group AIG, which has received $173bn in bailout money, and banking giant Citigroup, which has had $45bn in funds and more than $316bn of loan guarantees.

Warren . . . believes there are "dangers inherent" in the approach taken by treasury secretary Tim Geithner, who she says has offered "open-ended subsidies" to some of the world's biggest financial institutions without adequately weighing potential pitfalls. "We want to ensure that the treasury gives the public an alternative approach," she said, adding that she was worried that banks would not recover while they were being fed subsidies. "When are they going to say, enough?" she said. . . .

Full post as published by TalkLeft on April 05, 2009 (boomark / email).