Barack Obama's plan to tax banks to get “our money back” seems to be little more than a political response to the public outrage over his bailout of undeserving banks, hedge funds, automakers, and homebuilders.
For the record, Obama voted for TARP as a Senator. As President, he has implemented other giveaway programs to banks, including near 0% interest rates, taxpayer guarantees of bank deposits and money market funds, the Term Asset Securities Loan Facility, and worst of all, the so-called Public Private Partnership Investment Program. Obama has defended all these actions as necessary to preventing a collapse of the financial system. Now he wants to tax and vilify the same institutions he has been propping up?
Robert Rubin’s obstinate performance yesterday on Capitol Hill is sure to fuel popular disgust with the bank bailouts. Rubin appeared to be what he is, someone who has walked away with so much money that he doesn’t have to answer to anyone. When he was responsive, Rubin tried to claim that he had nothing to do with Citigroup’s meltdown. He also tried to make it complicated, which it is not.
