New post on Scotty Starnes's Blog |  |  Exposing Obama's fraud and lies! Neil Barofsky is the guy former President Bush put in charge to police the $700 billion plus TARP bailout. He's a Democrat who donated money to Obama's campaign. Barofsky constantly pointed out all the schemes involved with the government stealing money from the taxpayers to bailout their banker buddies, or fat-cats, as Obama referred to them. Barofsky points out the failures of Obama's Treasury Department's handling of the $75 billion mortgage modification scheme, which did so poorly Democrats shut it down. He also points out the fraud which is the Doddd-Frank bill. From the NYTimes: ..."Bailout" covers a lot of ground, running through attempts of the inspector general's office to ensure that additional rescue programs suggested by the Treasury had safeguards in place to avoid conflicts of interest, collusion and fraud. One battle involved the Public-Private Investment Program, designed to get troubled mortgages off banks' balance sheets by encouraging private investors to buy them using mostly taxpayer dollars. When the inspector general's office recommended ways to protect against fraud and to fix other flaws in the program, Mr. Barofsky writes, the Treasury rejected the suggestions, maintaining that they would gut the programs and reduce participation. Another skirmish involved the department's ill-conceived loan modification plan, known as the Home Affordable Modification Program. When the Treasury began discussing the program's outlines, Mr. Barofsky said he became concerned that it would open the door to fraudulent foreclosure rescue schemes, in which large upfront fees could be extracted from desperate borrowers eager to participate in what was supposed to be a free government program. When his office recommended fraud-prevention measures, several were ignored, he writes. Obama's HAMP cost the taxpayers $75 billion and failed miserably. Obama promise to cut waste and fraud, yet his guy's over the Treasury Dept. did nothing to stop these act. A few months after the modification plan was announced, his office began a preliminary audit of its rollout. "We soon verified what we had suspected," Mr. Barofsky writes. "Treasury had failed to ensure that the servicers had the necessary infrastructure to support a massive mortgage modification program." It barely got off the ground, and few homeowners have received the help they hoped for. Obama promised his HAMP would save 9 million homes from being foreclosed on. Instead a little over 400,000 received help. Barofsky also pointed out what many of us conservatives already knew. The Dodd-Frank bill does nothing to regulate these banks and will not prevent this next financial crisis. Basically, it was the criminals writing laws for the criminals. ...Mr. Barofsky's assessment of his former regulatory brethren is crucial for taxpayers to understand, because Congress's financial reform act — the Dodd-Frank legislation — left so much of the heavy lifting to the weak-kneed. "So much of what's wrong with Dodd-Frank is it trusts the regulators to be completely immune to the corrupting influences of the banks," he said in the interview. "That's so unrealistic. Congress has to take a meat cleaver to these banks and not trust regulators to do the job with a scalpel." Finally, Mr. Barofsky joins the ranks of those who believe that another crisis is likely because of the failed response to this one. "Incentives are baked into the system to take advantage of it for short-term profit," he said. "The incentives are to cheat, and cheating is profitable because there are no consequences." Despite all of this, Mr. Barofsky ends on something of a positive note. Meaningful changes to our broken system may finally come about, he writes, if enough people get angry. His conclusion is this: "Only with this appropriate and justified rage can we sow the seeds for the types of reform that will one day break our system free from the corrupting grasp of the megabanks." Continue reading>>> Scotty Starnes | July 23, 2012 at 8:30 AM | Tags: bank bailouts, Dodd-Frank financial reform bill, financial crisis, fraud, HAMP, President Obama, regulations, TARP, TARP Inspector General Neil Barofsky, Treasury Department, waste | Categories: Political Issues | URL: http://wp.me/pvnFC-7yr | | | |
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