I’ve written extensively on the TALF program. And while I always suspected as much, I now have come to the certain conclusion that TALF is the goverment’s way of laundering new and existing subprime auto loans subprime credit cards loans, that are currently on the books of the banks or their investment bank subsidiaries, with our taxdollars. The program is complete thievery. And shame on everyone for not being up in arms about what is happening. Journalists… I’m putting you all on the top of that list. You are failing this country miserably.
I, for one, don’t want my tax dollars used to purchase sub-prime car loans and credit card loans. I don’t even want to hear the word sub-prime again, in my lifetime. I want the banks to be responsible lenders and verify income and debt when they issue a credit card or an auto loan. And I don’t want my office computer spurting out a pre-approved offer of a credit card to any customers. Yes, this is still happening and will continue to happen because our Regulators are allowing it to happen in direct violation of all the laws governing safety and soundness in bank lending. And why are the banks still willing to grant credit in this irresponsible manner? Because they know they can sell these toxic assets off through the TALF program and any losses on these bad loans will be paid for by our taxes and the taxes paid by our children and our grandchildren, and for generations that follow.
If a bank is allowed to sell its toxic assets through the TALF program, and if the TALF program is funded with TARP funds, then any bank that sells its assets through TALF is still benefiting from TARP. Therefore, any bank that is selling their bad assets off through TARP should still be subject to executive compensation limits and restrictions on dividends, among other rules. If banks want to be truly independent of our government’s meddling, then let them live and die by their bad lending practices and eat all the sub-prime credit card and auto loans they granted and continue to grant.
The government has set aside $200 Billion dollars to fund the TALF program. On June 2nd, the banks laundered $3.3 Billion dollars in auto loans and $6.2 Billion dollars in Credit Card loans (out of a total of $11 Billion dollars in total loans laundered in just that day).
In light of President Obama’s wonderful new plan for “transparency”, I think the TALF program should publish, along with the list provided above, the dollar amount sold by each bank in each category. Let’s see which of our banks are truly independent and unconcerned and don’t need to be bailed out. Does anyone believe that JP Morgan Chase, American ExpressCo., Goldman Sachs Group Inc., U.S. Bancorp, Captial One Financial Corpl, Bank of New York Mellon Corp., and State Street Corp are NOT participating in the TALF program? Then prove it to me. Tell me which banks are selling these assets through TALF!!!!!
TALF program rules require that the “ABS have a long-term credit rating in the highest investment-grade rating category”. How does our government dare to defend this term in light of the fact that they are using TALF to strip SUB PRIME credit card and auto loans off the banks’ balance sheets. I’m not guessing at this. It is on the TALF website.
Please, join me in my outrage. Reach out to your Congressional leaders, IN PERSON. Challenge them on these decisions. Bring them a copy of this blog and ask them to defend the actions I’m describing. Make them accountable for the programs they are approving. Write to your journalists. Demand that they give these issues the media attention deserved and needed to inspire our people into action. Each and every one of us must take responsibility and become part of the solution. They are counting on us to quietly follow, like sheep. Show them that the people of this country have back-bone and will stand up for what we believe in. If you fail to do this, then, in my opinion, you have relinquished your right to bitch.