Kilroy Protecting Taxpayers

The bank and stock market problems of last fall under the Bush administration were solved by somewhat backroom maneuvering by pro-bank, pro-stock market firm members of the Bush administration. Now we know a little more about what happened and what was done.

The Washington Independent:

... a recent report from the congressional panel charged with overseeing the bailout program reveals that, at least in the program’s initial stages, the returns are nothing to write home about. Indeed, the July 10 assessment found that the 11 small banks that have thus far repurchased their warrants from the Treasury paid just 66 percent of the warrants’ value. (Treasury received the warrants from bailout recipients as collateral to protect taxpayers.)

If similar underpayments were made for all outstanding warrants, the oversight panel warned, taxpayers could lose out on $2.7 billion.

Those figures weren’t lost on some congressional lawmakers, who introduced legislation last week designed to maximize taxpayer profits under the Troubled Asset Relief Program. Sponsored by Rep. Mary Jo Kilroy (D-Ohio), the bill would force the Treasury to sell back all of its warrants through a public auction, rather than through the secret negotiation process currently in place....

Democratic Rep. Mary Jo Kilroy (OH-15) is clearly trying to help taxpayers get their money back from the bailout bills. Kilroy wants the warrants sold in the open market, not in secret.

Kilroy should be applauded for helping to protect taxpayers. I just wonder what her opponent in the last election would have done. Kilroy's Republican opponent was a former bank lobbyist. Something tells me that if he was aware of these backroom shenanigans by banks, he probably would have ignored them to protect his bank buddies.

Mary Jo Kilroy continues to demonstrate her loyalty to her constituents. She has worked her adult life in the public sector and knows what it means to work for the people.