Thursday, July 05, 2012

Fundamental Cultural Change Needed

As much of a disaster as Obama has been, I often wonder how much difference it would have made to have had a Republican in office (I lean to the answer "very little").  Roberts, Bush's appointee, is one recent data point, while this post reminds us of what Bush's regime did during the banking bailouts:

In a recent speech at Stanford (video here) former Wells Fargo Chairman and CEO Dick Kovacevich told the full story of how he was forced to take TARP funds even though Wells Fargo did not need or want the funds. The forcing event took place in October 2008 at a now well-known meeting at the U.S. Treasury with Hank Paulson, Ben Bernanke, as well as several other heads of major financial institutions.

In his speech, Kovacevich first described how he and the other bankers were told at that meeting that they had to accept the funds. He then paused and said to the Stanford audience: “You might ask why didn’t I just say no, and not accept TARP funds.” He then explained: “As my comments were heading in that direction, Hank Paulson turned to Chairman Bernanke, who was sitting next to him and said ‘Your primary regulator is sitting right here. If you refuse to accept these TARP funds, he will declare you capital deficient Monday morning.’ This was being said when we were a triple A rated bank. ‘Is this America?’ I said to myself.”

1 Comments:

Blogger John Drake said...

These comments are truly depressing considering how embedded this mentality is throughout the culture. Thank you for sharing.

6:36 AM  

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