US Treasury Gave Extra Bailouts

According to a report by a US Inspector General, the US Treasury was up to some capitalist shenanigans when it doled out bailout money to banks.

In fall 2008, the Treasury announced it was giving “healthy” major banks the taxed earnings of the American people in the form of bailouts. Each bank was to receive 3% of its assets plus $25 billion, as a gift for being dysfunctional, yet necessary capitalist organizations in the context of capitalism.

However, some of the banks that got bailed out were actually assessed as fatally unhealthy.

The US Treasury labeled all the banks “healthy” and then worked with the ailing banks (Bank of America, Wells Fargo) that were buying out some of the worst-off banks (Merrill Lynch, Wachovia) to ensure that billions more in tax money would go to the buyer banks.

A spokesmodel for the Treasury explained that the Treasury misled the American public because of “unprecedented circumstances.” The circumstances nonetheless had precedent.

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