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Henry Paulson Lied About TARP, Should be Indicted for Perjury

TARP was Supposed to Encourage Bank Lending.Remember TARP?  The Trouble Asset Relief Program was sold to the American people as a way to resume bank lending to small businesses.  TARP's architect, Henry Paulson, was CEO of Goldman Sachs before becoming Treasury Secretary.Hank Paulson said of TARP:During the two weeks that Congress considered the legislation, market conditions worsened considerably. It was clear to me by the time the bill was signed on October 3rd that we needed to act quickly and forcefully, and that purchasing troubled assets ? our initial focus ? would take time to implement and would not be sufficient given the severity of the problem. In consultation with the Federal Reserve, I determined that the most timely, effective step to improve credit market conditions was to strengthen bank balance sheets quickly through direct purchases of equity in banks...continue to full post

Full post as published by Crime & Federalism on April 24, 2010 (boomark / email).