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http://online.wsj.com/article/SB10001424052748703712504576232421328148128.html?mod=googlenews_wsj
Neil Barofsky, the departing special inspector general for TARP, warned that the same "too big to fail" firms that nearly brought down the financial system in 2008 have become bigger and more interconnected and continue to maintain an unfair advantage over smaller competitors.
The federal bailout also fell far short in helping Main Street by encouraging greater bank lending or assisting enough homeowners with troubled mortgages, he said, speaking before a House Oversight and Government Reform subcommittee. He called a TARP-funded mortgage modification program a "colossal failure." The House voted Tuesday evening to end the program.
"TARP's most significant legacy may be the exacerbation of the problems posed by 'too big to fail,' particularly given the manner in which Treasury executed the bailout, largely sparing executives, shareholder, creditors and counterparties, reinforcing that not only would the government bail out the largest institutions, but would do so in a manner that would do little harm to the responsible stakeholders," Mr. Barofsky said.
Neil Barofsky, the departing special inspector general for TARP, warned that the same "too big to fail" firms that nearly brought down the financial system in 2008 have become bigger and more interconnected and continue to maintain an unfair advantage over smaller competitors.
The federal bailout also fell far short in helping Main Street by encouraging greater bank lending or assisting enough homeowners with troubled mortgages, he said, speaking before a House Oversight and Government Reform subcommittee. He called a TARP-funded mortgage modification program a "colossal failure." The House voted Tuesday evening to end the program.
"TARP's most significant legacy may be the exacerbation of the problems posed by 'too big to fail,' particularly given the manner in which Treasury executed the bailout, largely sparing executives, shareholder, creditors and counterparties, reinforcing that not only would the government bail out the largest institutions, but would do so in a manner that would do little harm to the responsible stakeholders," Mr. Barofsky said.
