Elizabeth Warren, the TARP watchdog, has released her six month report card on the state of TARP. Yep, it’s been six months and we’re still mainly here and in one piece, so take a second to be glad for that.
As was reported a few days ago, Warren’s report calls for the government to administer tough justice to the banks, arguing that there are four keys to the success of any banking system rescue, when looking throughout history.
- Clarity (as in, a full explanation of why and what the government’s doing with taxpayer money)
The other key point, which we’re really glad Warren made, is that Tim Geithner’s strategy only works if this is a temporary, liquidity problem, rather than something more profound. That’s key. Few others in government are acknowleding that crucial point.