Representative Mike Conaway's latest podcast addressed the upcoming Obama administration and his reasons for opposing an auto bailout or additional fiscal stimulus. Ironically, he derided excessive federal spending, after voting for the $700 billion bailout bill. Conaway joins his Senate counterpart, Kay Bailey Hutchison, in opposing auto assistance while voting for Wall Street aid. I made the following comment on Mike's Blog:
Happy Thanksgiving to you as well, Representative Conaway. I bet Cerberus Capital and The Carlyle Group are grateful for taxpayer funded recapitalization of their affiliates, GMAC and Boston Private Financial Holdings.
I fully understand your opposition to an auto bailout, given the industry's cloudy future. Funny, Goldman Sachs stock continues to free fall. The street is unsure how Goldman will make money in the future. Their business model is in question, much like big auto.
But $153 million for an affiliate of The Carlyle Group, supposedly flush with capital and ready to pounce on cheap financial firms? The press release stated BPFH had an already strong capital position. Boston Private targets the high net worth marketplace.
Reporting will reveal how much Cerberus' GMAC gets from the TARP. Why should taxpayers put recapitalize private equity affiliates? If Carlyle can bid on the Bank of Ireland, it can prop up BPFH.
Please explain why the TARP is being used this way. Also, please explain why credit remains frozen, why markets continue to behave fearfully. You voted for the $700 billion bailout and are my Representative for the $4.28 trillion in federal financial interventions.
It's time your CPA and bank backgrounds are used to translate for your constituents. Please do so.