Naked Capitalism: U.S. Treasury Bars Use of TARP Funds to Help Borrowers Facing Foreclosure

[amborin]

Thursday, December 9, 2010

Treasury Bars Use of TARP Funds to Help Borrowers Facing Foreclosure

If you had any doubts about whose side the Administration is on, this story should settle all doubts. From the Nation:
Consider this: the recent Fed audit revealed over $3.3 trillion in emergency assistance to the banks and other corporate behemoths during the financial crisis–no strings attached….

Then consider the 19 states which are recipients of the Hardest Hit Fund (HHF)–a portion of TARP money set aside to help homeowners in states struggling with the highest unemployment rates and steepest declines in the housing market.
Some of those states, including Ohio, let Treasury Secretary Tim Geithner know as far back as this past spring that they wanted to use some of those funds to assist legal aid groups that help individual homeowners….

Treasury solicited the opinion of an outside law firm, Squire, Sanders & Dempsey. Never mind that the firm’s clients include BB&T Corporation and payday lender CNG Financial Corp. The firm said, in essence–sorry, no can do on the legal aid. Not permitted under the TARP.

Huh? Hold on a sec–is this the same TARP that granted the Treasury Secretary all those “extraordinary powers” to protect people’s home values, preserve home ownership, promote economic growth, etc.?

snip

http://www.nakedcapitalism.com/2010/12/treasury-bars-use-of-tarp-funds-to-help-borrowers-facing-foreclosure.html

[texastoast]

1. Give it to the bank CEOs

They need it, right?

[RUMMYisFROSTED]

2. We've got to have our priorities against ourselves. Stand tall!

[ejpoeta]

3. imagine if instead of giving it to the banks they had given all that money to the borrowers to pay

their loans. that would have helped the foreclosure crisis and the credit default swaps and the banks all at the same time!

[ixion]

4. At some point, people are going to catch on: We, the people are the enemy

as far as the corporate-run government is concerned.

[Waiting For Everyman]

5. As usual, protecting the big banks from us little people.

Little people who have what would be winning legal defenses against these criminals - better do what they can to keep us out of court.

Chickenshit bullies.

[Chisox08]

6. Socialism for the rich and the free market for the rest of us