Quote:
Originally Posted by Elli
Wouldn't it be easier and quicker to just fine them? Tell them to give back all the bailout money? THey're using up taxpayer dollars to sue the companies that acted with their permission to screw over the taxpayers, and then they shored the banks up with more taxpayer dollars.. now they're suing? Who are they kidding?
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It's not as simple as that. And most of the bailout money have been paid back, it's a loan program not a giveaway. The GM bailout was also succesfull.
However, some of the most toxic assets are now owned by the gov. Also, the FED has been lending them trillions on low interest loan to keep the system going. This is really bad, and a long term moral hazard.
I think to fix the balance, they need to criminaly prosecute the execs responsible and make an example of them. This is very hard to do, as the procedures were industry standard. The ratings agencies should be the first too go, they are still rating subprime AAAs to this day.