October 20, 2009

Washington's Not To Blame for Citi, GM Losses

Daniel Gross, Newsweek

Companies like Citi and GM were failing before we took over.

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In the past year, taxpayers and government agencies have engineered optimal conditions for bankers to score. To use a metaphor bankers can understand (golf), by supporting markets, taking interest rates to zero, and providing legions of subsidies, the government has widened the fairways, enlarged the greens, and dug holes the size of bomb craters. Some bankers are playing the redesigned course like Tiger Woods. JPMorgan Chase and Goldman Sachs each earned more than $3 billion in the last quarter. But other huge banks are playing like Ted Knight's Judge Smails in Caddyshack. Citi scratched out a mere...

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Related Topics: economy

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