When Wall Street was bailed out, taxpayers and homeowners were lied to. Promised assistance to underwater homeowners was never properly implemented. Only the banks were "saved" by the injection of billions of dollars into the likes of Goldman Sachs.
Many, many lies! Goldman Sachs claimed that it did not need the TARP bailout funds but only took them so that everyone would be on a level playing field. Turns out that 12 of the most prominent banks were on the verge of failure. Goldman Sachs is number five of those prominent banks and their claim to solvency was a lie.
Secrets and Lies of the Bailout
The federal rescue of Wall Street didn't fix the economy--it created a permanent bailout state based on a Ponzi-like confidence scheme. And the worst may be yet to come
By Matt Taibbi - RollingStone Politics
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The Scam Wall Street Learned From the Mafia
This announcement marked the beginning of the legend that certain Wall Street banks only took the bailout money because they were forced to – they didn't need all those billions, you understand, they just did it for the good of the country. "We did not, at that point, need TARP," Chase chief Jamie Dimon later claimed, insisting that he only took the money "because we were asked to by the secretary of Treasury." Goldman chief Lloyd Blankfein similarly claimed that his bank never needed the money, and that he wouldn't have taken it if he'd known it was "this pregnant with potential for backlash." A joint statement by Paulson, Bernanke and FDIC chief Sheila Bair praised the nine leading banks as "healthy institutions" that were taking the cash only to "enhance the overall performance of the U.S. economy."
But right after the bailouts began, soon-to-be Treasury Secretary Tim Geithner admitted to Barofsky, the inspector general, that he and his cohorts had picked the first nine bailout recipients because of their size, without bothering to assess their health and viability. Paulson, meanwhile, later admitted that he had serious concerns about at least one of the nine firms he had publicly pronounced healthy. And in November 2009, Bernanke gave a closed-door interview to the Financial Crisis Inquiry Commission, the body charged with investigating the causes of the economic meltdown, in which he admitted that 12 of the 13 most prominent financial companies in America were on the brink of failure during the time of the initial bailouts.
On the inside, at least, almost everyone connected with the bailout knew that the top banks were in deep trouble. "It became obvious pretty much as soon as I took the job that these companies weren't really healthy and viable," says Barofsky, who stepped down as TARP inspector in 2011.