Finally: Congressional Pushback Against Taxpayer-Funded Wall Street

by: Tyler Durden

Recently, the Congressional Oversight Panel announced (pdf file) that based on the currently accepted process the Treasury has adopted for banks to repurchase TARP warrants, the ultimate "recovery" to taxpayers would be 66 cents on the dollar. In other words, using the top secret, private method that the Treasury has signed off on, taxpayers are impaired once more even though the banks that repurchase their TARP warrants are presumably so healthy, that their EPS ebullience is supposed to drive the market higher and higher each day. How much longer will Joe Q Public have to suffer while Wall Street once again goes back to its habits of hitting the LIE for the 7 pm Southampton dinner date 4 out of 7 days a week? Apparently as long as the 401(k) is still up for the day compliments of "justificatory" drivel pouring from GE subsidiaries, the public is more than happy to be abused day in and day out. So what happens when reality finally sets in?

Luckily, Mary Jo Kilroy, a freshman Democrat from Ohio, is stepping in for the small guy, and has introduced a bill (HR 3232) to compel an open auction of these warrants with six cosponsors: Brad Sherman, John Boccieri, Betty Sutton, Jackie Speier, Marcia Fudge and Alan Grayson. Notably, Sherman was the leader of the little noted but important ‘skeptics caucus’ that attempted to stop the $700B bailout in September. Also Alan Grayson is the man whose co-sponsorship of Ron Paul's HR1207 "Audit The Fed" bill has gotten over 260 Congressional supporters and at this point only additional Wall Street special interests are hindering its passage.

First Goldman (NYSE:GS) is finally being attacked on all media fronts, and now Wall Street as a corrupt, standalone crony entity is starting to get the proper attention it so rightfully deserves. Yet so much more remains to be done.