Playing off of our story today on yesterday’s TARP oversight hearing, here’s a fascinating exchange between Sen. Richard Shelby (Ala.), the highest ranking
“„Shelby: Isn’t that a terrible way to look after the taxpayers money and to make purchases anywhere?
“„Warren: Well … Treasury simply did not do what it said it was doing … I can’t say that more clearly.
“„Shelby: In other words, they misled the Congress, did they not?
“„Warren: Well…
“„Shelby: The Bush administration — Secretary Paulson, Chairman Bernanke — misled the people — the Congress and the people — of the United States.
“„Warren: They announced one program and implemented another.
“„Shelby: Absolutely. They said one thing and two weeks later did another. Is that correct?
“„Warren: Senator, it’s more than that.
“„Shelby: No …
“„Warren: Yes, yes, senator, they did. But it’s more than that. Even in the program that they moved to, in the second program, they described that program one way, and they priced it a different way. They did not price for risk. That’s what markets do.