{"id":192380,"date":"2009-04-06T23:03:00","date_gmt":"2009-04-07T04:03:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/04\/06\/obamas-bank-plan-worse-than-thought\/"},"modified":"2009-04-06T23:03:00","modified_gmt":"2009-04-07T04:03:00","slug":"obamas-bank-plan-worse-than-thought","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/04\/06\/obamas-bank-plan-worse-than-thought\/","title":{"rendered":"Obama&#8217;s Bank Plan Worse Than Thought"},"content":{"rendered":"<p>Jeffrey Sachs has <a href=\"http:\/\/www.huffingtonpost.com\/jeffrey-sachs\/the-geithner-summers-plan_b_183499.html\">looked at the plan<\/a>, and his assessment is that it is far worse than previously believed, noting that, &#8220;Insiders can easily game the system created by Geithner and Summers to cost up to a trillion dollars or more to the taxpayers.&#8221;<\/p>\n<p>Basically, it means that the banks can set up <span style=\"font-weight:bold;\">off the balance sheet subsidiaries<\/span> to over pay for the assets, and when they go bankrupt, the federal government is left holding the bag:<\/p>\n<blockquote><p>Citibank thereby receives $1 million for the worthless asset, while the CPPIF ends up with an utterly worthless asset against $850K in debt to the FDIC. The CPPIF therefore quietly declares bankruptcy, while Citibank walks away with a cool $1 million. Citibank&#8217;s net profit on the transaction is $925K (remember that the bank invested $75K in the CPPIF) and the taxpayers lose $925K. Since the total of toxic assets in the banking system exceeds $1 trillion, and perhaps reaches $2-3 trillion, the amount of potential rip-off in the Geithner-Summers plan is unconscionably large.<\/p><\/blockquote>\n<p>This is so stupid and corrupt that Larry Summers has to be the guy who came up with this.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jeffrey Sachs has looked at the plan, and his assessment is that it is far worse than previously believed, noting that, &#8220;Insiders can easily game the system created by Geithner and Summers to cost up to a trillion dollars or more to the taxpayers.&#8221; Basically, it means that the banks can set up off the &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970,1004,985,1173],"tags":[],"class_list":["post-192380","post","type-post","status-publish","format-standard","hentry","category-corruption","category-finance","category-regulation","category-white-house"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/192380"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=192380"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/192380\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=192380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=192380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=192380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}