When is a government watchdog not really a watchdog?
When he rolls over and lays at the feet of his master rather than sink his teeth into a program that he’s been tasked to guard.
Such appears to be the (unsurprising) case with Herbert Allison, Jr. (pictured), a former Wall Street executive (Merrill Lynch and TIAA-CREF) until he was appointed president and CEO of Fannie Mae in 2008, after it was put into conservatorship. Subsequently President Obama named (and the Senate confirmed) him as overseer of the Troubled Asset Relief Program (TARP), the $700 billion asset acquisition fund that bailed out Wall Street financial institutions. He served in that role for about 15 months, until September 2010.
Pension Benefit Guaranty Corporation, like Fannie Mae and Freddie Mac, is a case of "too big to fail." At least various members of Congress see it that way. And they are planning a push for legislation designed to shore up underfunded multiemployer private-sector pension funds, but which would put taxpayers on the hook for billions, if not tens of billions, of dollars over the long term. Sen. Bob Casey Jr., D-Pa., and Reps. Earl Pomeroy, D-N.D., and Patrick Tiberi, R-Ohio, the driving forces behind this measure, seek to shift the primary responsibility of keeping pensions adequately funded from unions and unionized employers to the general public. It's another example of the bailout culture in action.
Charlie Gasparino of Fox Business Network reported yesterday that the Obama Administration, Federal Reserve and Wall Street firms (like Goldman Sachs, Citigroup, etc.) are exploring a “face-saving” measure by splitting the presidentially beloved ShoreBank Corporation in two, with the community/green jobs lender surviving with the “good” assets while the FDIC and private investors absorb the toxic assets. Another reporter following the story told me that ShoreBank's Friday deadline from the investors has been extended but he didn't know how long. A spokeswoman from Goldman Sachs refused to comment on the issue.
Here's the split-the-baby scenario explained by Gasparino:
For example, ShoreBank has two sub-entities based in the Pacific Northwest: the FDIC-backed ShoreBank Pacific, and the nonprofit ShoreBank Enterprise Cascadia. Both are institutions whose lending criteria are based upon progressively defined notions of “sustainability,” with the bank a partnership between ShoreBank Corp. and the environmental group Ecotrust. The bank’s mission is to “profitably assist businesses, and through them their communities, to be sustainable in economic, social, and environmental practices.” Here’s how they explain their lending criteria:
Submitted by NLPC Staff on Thu, 01/15/2009 - 01:00
Today the National Legal and Policy Center (NLPC) asked Neil M. Barofsky, the Special Inspector General for the Troubled Asset Relief Program (TARP), for a formal review of the sponsorship by Bank of America and Citigroup of the Rainbow/PUSH Wall Street Conference currently taking place in New York City. The January 13-16 event is one of two of Jesse Jackson’s annual fundraisers.
Submitted by NLPC Staff on Wed, 01/14/2009 - 01:00
Peter Flaherty, President of the National Legal and Policy Center (NLPC), today made the following statement:
President-elect Obama should withdraw Timothy Geithner’s nomination for Treasury Secretary. Obama says that middle–class families with incomes of $250,000 are wealthy and their taxes should be raised, but he wants a Wall Streeter who didn’t pay his taxes to be his point man on the economy.