After 2 years, the major beneficiaries are Banks and Wall Street. Unemployment and foreclosure filings at all-time record high. What other proof do you need that we are focusing on bailing out the Banking Oligarchy?
Wall Street buy-out chief Mark Patterson says the US bank bail-outs are a ‘sham’ to enrich speculators. (Source.)
The US Treasury’s effort to stabilise the banking system through the TARP program is a hopelessly ill-conceived policy that enriches speculators at public expense, according to a buy-out firm supposed to be pioneering the joint public-private bank rescues.
“The taxpayers ought to know that we are in effect receiving a subsidy. They put in 40pc of the money but get little of the equity upside,” said Mark Patterson, chairman of MatlinPatterson Advisers.
The comments are likely to infuriate Tim Geithner, the US Treasury Secretary, because Matlin Patterson took advantage of the TARP’s matching funds to buy Flagstar Bancorp in Michigan. His confession appears to validate concerns that the bail-out strategy is geared towards Wall Street.
“It’s a sham. The banks are insolvent.” Mr Patterson expects the great crunch to end in deliberate inflation. “The US government has thrown 29pc of GDP at this crisis compared to 8pc in the early 1930s. . . . The only way out is to debase the currency, but that is going to lead to some very high inflation three years down the road,” he said. (Source.)
New York-based MatlinPatterson Global Advisers LLC is a private equity firm specializing in distressed situations. MatlinPatterson manages $3.9 billion and currently is looking to raise $4.5 billion for its third buyout fund.