Thursday, October 22, 2009

How's Our Banking System Now?

Now that we have far fewer but far bigger banks than just one year ago, are we better off? Not according to the Inspector General of the TARP Fund, Neil Barofsky. He says, "I think we may be in a far more dangerous place today than we were a year ago."

He monitors several bailout-related programs and has launched about three dozen investigations since December 2008. He has said since last July that he intended to demand transparency from everyone, including the US Treasury.

According to The Huffington Post, Barofsky claims:

1. Hundreds of banks can track their use of the TARP money, no matter what the U.S. Treasury claims.
2. The TARP rescue, intended to increase lending by banks, has failed in that respect.
3. The U.S. financial system is shakier than ever.

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