“We may have to do exceptional things again if we face a shock that large,” Geithner told the Office of the Special Inspector General for TARP in December
...but the group also said the Treasury secretary’s comments highlight that TARP has left a legacy of “moral hazard associated with the continued existence of institutions that remain ‘too big to fail.’”
“It also serves as a reminder that the ultimate cost of bailing out Citigroup and the other ‘too big to fail’ institutions will remain unknown until the next financial crisis occurs,” SIGTARP added in its report.
Shelia Bair covers her ass with:
The FDIC’s Bair told SIGTARP that the New York Fed warned told her that “problems would occur in global markets” if Citi failed.
“We didn’t have our own information to verify this statement, so I didn’t want to dispute that with them,” Bair added, according to SIGTARP
Hide your wallets, your kids and grand kids piggy banks. Timmy the Mad Elf will come looking for them.