Donald Luskin asks “Is TARP a criminal enterprise?” and goes on to describe a number of dubious details such as:
…it was disclosed that “nearly 20 preliminary and full criminal investigations” are underway, including “large corporate and securities fraud matters affecting TARP investments, tax matters, insider trading, public corruption, and mortgage-modification fraud.”
…Perhaps this refers to the controversy that surfaced last January when it was said that Barney Frank (D., Mass.), the powerful head of the House Financial Services Committee, intervened to get TARP funding for a favored constituent, Boston’s OneUnited Bank.
…It’s easy to guess that Barofsky is looking into the possibility that Treasury Secretary Henry Paulson coerced the CEOs of the nine largest banks to accept capital investments from TARP, even though several of them didn’t want the government as a stakeholder.
…Cuomo writes that according to a deposition by CEO Lewis, “Bank of America did not disclose Merrill Lynch’s devastating losses . . . and would have done so but for the intervention of the Treasury Department and the Federal Reserve.”
But the important question to ask is not “Is TARP (or any other particular program) a criminal enterprise?”. The important question is “Could it have been otherwise?” The government is nothing more than an organization of people. A private organization does not have the authority to confiscate people’s property and use it for its own purposes, whatever those purposes may be. Neither does a government. The proper term for such confiscated property is loot. Is there a non-criminal way to acquire or distribute loot? I think not.