In spite of the wall-to-wall coverage of the tragedy in Japan, business news reporters have found time to bring us up-to-date on the latest news with banks.
The WSJ put up a story today about big banks that got TARP money. TARP Watchdog: Big Banks Got Unfair Advantage
IFO vividly remembers hectoring her Democratic congressional representative, urging him to vote against what she cleverly called the “Bush Bailout.” It didn’t work – he voted for it. That is pretty ironic, since most of his campaign money came from public and private sector unions. Perhaps his union bosses were staring at the serious declines in the portfolios and urging him to vote for the bailout.
On a different note, but still on a bank, The Puget Sound Business Journal published the pushback from WaMu executives who are being sued by the federal government. The WaMu execs say: FDIC suit is “political theater”.
It behooves us to remember the meaning of the term “moral hazard.”