Sheila Bair, in new book, faults Obama and Bush advisers during financial crisis

The Obama and Bush admin­istrations largely ignored the needs of beleaguered homeownerswhile focusing too narrowly on the well-being of Wall Street during the worst financial crisis since the Great Depression, according to a new book by a top participant in the government’s response.

The book, “Bull by the Horns,” by former Federal Deposit Insurance Corp. chairman Sheila Bair, says both administrations’ top advisers paid little more than lip service to helping borrowers at risk of foreclosure, instituting programs they knew were likely to fail and ignoring her recommendations about how to improve them.

By contrast, she said, senior advisers were willing to go to great lengths to rescue the nation’s top banks — without demanding accountability from top financial executives.

A Republican who became a champion among liberals for her firm stance toward Wall Street and noisy presence in favor of homeowner assistance, Bair reserved her sharpest words for Treasury Secretary Timothy F. Geithner, who served as president of the Federal Reserve Bank of New York in the lead-up to the financial crisis.

After she recommended that President Obama name former Federal Reserve chairman Paul Volcker as Treasury secretary, she wrote, Obama’s decision to tap Geithner was “a punch in the gut.” She considered Geithner the “bailouter in chief” because he wanted to make unconditional guarantees to top banks to keep them afloat without demanding much in return.

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