Wednesday, October 21, 2009

TARP Report is Clear as Mud

The "straightforward accounting" of the Troubled Assets Relief Program is less than that, at least in news reports. Forbes stated that Bank of America and Citigroup made good on their dividend payments. It stated AIG didn't have to make interest payments on its $44 billion in loans.

Did it mention Uncle Sam renegotiated dividend payments from Citi and AIG in March because they couldn't pay?

Forbes also reported:

The report says the prospects of the public getting its money back from the bruised automakers Chrysler and General Motors may not be so good.
Did it state Uncle Sam wrote off $7 billion in Chrysler loans in May?

The next recipient to fail might be small business lender CIT, well behind on its TARP interest payment. Funny, that's TARP's newest target, loaning to small business. Guess who makes $1 billion if CIT implodes? Goldman Sachs.

And who did Mr. Kashkari work for, before his appointment to TARP Czar? The very same, Goldman Sachs. Watch CIT closely.