The Congressional Oversight Panel (COP) released its latest report, Assessing Treasury’s Strategy: Six Months of TARP. In what might be considered a surprising conclusion, the COP proffered that the U.S. Government might want to jettison top management from some of the largest and most troubled banking institutions. According to a story by Robert Schmidt for Bloomberg The COP,
… suggested that getting rid of top executives and liquidating problem banks may be a better way to solve the economic crisis (then what the government has been doing).
The Congressional Oversight Panel, in a report released yesterday, also said the Treasury may be relying on too rosy an economic scenario to guide its $700 billion bailout, and declared that the success of the program after six months is “mixed.” Three of the group’s members disagreed with at least some of the findings.
The COP, excluding a number of its Republican members, appears to be somewhat closer to the ideas of the highly vocal Nobel economists Paul Krugman and Joseph Stiglitz than to the top economic leaders of the current administration. The panel’s report will only serve to increase the pressure on top management of some of the country’s largest and most troubled banks (CitiGroup and Bank of America). I continue to believe Ken Lewis’ time at the top of Bank of America may be short-lived.
Stay tuned.
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