Donald Trump Has Another Brutal Post About Joe Biden
'ISIS Dry Run'? We Know How Two Jordanians Tried to Infiltrate a US...
A Comedian Asked Some College Kids About Hamas and Israel...And It Was a...
Top Sportscaster Disagreed With Harrison Butker's Address the Right Way
Morehouse Might Cancel Graduation Ceremonies 'On the Spot' if This Happens During Biden's...
What if Biden Wins in November? Part One
Biden's Tariffs Are Bad. Biden's Tariffs Coupled With EV Mandates Are Even Worse.
The Despicable Crime of Indoctrinating Young Children
Why These Voters Say the Trump Trial Is Backfiring on Democrats
Trades Keep America Running, and We Need Them Now More Than Ever!
Sham Elections Garner Farcical 8 Percent Support in Iran
Heil Harvard!
A Californian Visits the U.S.A.
False Bravado: Joe Biden is our Debater-in-Chief?
Happy Anniversary to Lois Lerner!
Tipsheet

SOTU Fact Check: Obama Bailed Out Banks On The Backs Of The Middle Class

In his State of the Union address Tuesday night, President Obama claimed his administration has secured "new tools" to "stop taxpayer funded bailouts."

In reality, not only are the nation's biggest banks now bigger than ever, thanks in no small part to Obama's Dodd-Frank law, but consumers have seen almost none of the financial relief Obama promised them, and during the peak of the crisis Obama actually used middle-class homeowners to prop up Wall Street banks.

Advertisement

First, while Obama's Justice Department has announced multi-billion dollar settlements with JP Morgan and Bank of America for their actions before and during the financial crisis, the dollar amounts of those settlements have been greatly inflated, and the banks have been very slow to pay consumers any of the actual relief.  

Meanwhile, thanks to the "bigger moat" of regulation caused by Dodd- Frank, the nation’s largest banks now control an even larger percentage of the nation’s assets than when Dodd-Frank became law, making it even harder for the federal government to claim it won't bail them out.

Finally, when it did come time to bailout the banks last time, Obama used Troubled Asset Relief Program dollars to create the Home Affordable Modification Program, which Treasury Secretary Tim Geithner then used to help "foam the runway" for Wall Street at the expense of distressed homeowners.

Advertisement

Instead of pairing back government programs (like the FDIC) that allow big banks to only get bigger, Obama has chosen to try and micromanage those banks with government bureaucrats. It is only a matter of time before the bankers paid millions to outsmart their bureaucrat overseers manage to get a taxpayer bailout again.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement