Elizabeth Warren Talks Toxic Assets On MSNBC (VIDEO)

Elizabeth Warren, the chair of the Congressional Oversight Panel charged with monitoring the bank bailout, appeared on MSNBC this morning to talk toxic assets. On Joe Scarborough's Morning Joe, Warren warned of the hard-to-price assets that are still lingering on many bank's balance sheets. "By and large, the toxic assets that brought us to this point are still on the books of the banks," she said.

Warren, who's been leading the call of late to reconcile the shoddy assets weighing down the bank sector, warned of a looming commercial mortgage crisis. And even though Wall Street has steadied itself in recent weeks, smaller banks will likely need more aid, Warren said.

Roughly half of the $700 billion bailout, Warren added, was "don't ask, don't tell money. We didn't ask how they were going to spend it, and they didn't tell how they were going to spend it."

She also took a passing shot at Tim Geithner - at one point, comparing Geithner's handling of the bailout money to a certain style of casino gambling. Geithner, she said, was throwing smaller portions of bailout money at several economic pressure points.

"He's doing the sort of $2 bets all over the table in Vegas," Warren joked.

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Comments

[karen1p]

Elizabeth Warren President 2012!

[ohboy]

I got into a HP thread debate with an obamazombie recently about the impeccable credentials of Tim Geithner, and how my points about his Goldman-Sachs lineage were "inaccurate" and "unfair."

Okay. Well, angelkins, where ever you are, how about taking a read up on Liz Warren?

[SvrWx]

The big question that I find myself wondering is how long do we have until we go into another banking crisis due to the fact that these toxic assets are unreconciled. As people continue to have their homes foreclosed on, when will these sinewy fingers reach back up and bite us in the butt? And how will it affect us especially as we have printed so much money lately?

Anyone know, because although I can be concerned, I don't know the answer and I'm sure there are folks more versed in economic theory than I am.

[WonderingNThinking]

Thank you Elizabeth Warren. I just pray that the administration is trying to do what's right. It's strange that you were put in charge of this committee when you speak the truth. It gives me hope that the administration plans to do what's right.

[valboski]

Why isn't Congress paying attention to her as they hired her to be the watchdog for TARP? Because they don't care or understand and it's time to get rid of all of them.

[Coastalthinker2]

Please read this well written article in Harvard Magazine by Elizabeth Warren about the middle class on the precipice. SHE WROTE THIS IN 2006!! This is a person who truly wants the "middle class" in this country to succeed. When she speaks, I listen.

http://harvardmagazine.com/2006/01/the-middle-class-on-the.html

[WonderingNThinking]

I saw a great video presentation by her on YouTube (too lazy to find the link again, but I think it was at UC Berekley). I agree that she truly wants the "middle class" to succeed. I think she's honest - at least until she gets enough press and they stop her from telling the truth.

[jennylynn]

The polls say 29% approve BO performance. Is it possible to fall this fast?

http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll

[Coastalthinker2]

1. This is a poll by Rasmussen which is very conservative and always has the worst polling data for the President.

2. The poll shows that 47% at least somewhat approve of the Presidents performance (keep in mind this is from Rasmussen).

[BurtonOerney]

It would be better to liquidate toxic assets now than it would have been in, say, March. Then, PPIP could not get buyers and sellers to agree on a price. Now, as more mortgages are paying regularaly or have been reworked, securitized toxic assets have increased in value and people want to buy the securities. People act like mark-to-market is the way we've always done things; like using a model to value an income stream is 'creative accounting.' In fact, the only time securities were not valued by a model was between the collapse of Enron and six months ago. Elizabeth Warren wants some populist cred. It's weird she has to go on Morning Joe with Pat Buchanan to get it but whatever.

[Goodtimes09]

Some focus on contamination. Others focus on contribution. Like the man who sings in City Council Meetings http://www.youtube.com/watch?v=3kuNnnW-7Ws

[glitzqueen]

Elizabeth Warren is a national treasure. If only she were running the Treasury Department!

[olympus6]

Rahm(former Investment banker), Summers(poster boy for the mess, oh also took $5-6mil from i. banks last year), Geithner(please..), Berneke(former chairmen of Bush's Econ. Council), GSachs guys all over the place in Administration, and last but not least Pres. Obama's largest donor-GSachs. What more do you need?
By the way not only are the big banks too big to fail, JP, Wells, BOA, etc were made even BIGGER during the crisis.
Thank goodness for Elizabeth Warren. And where do I line up to sell apples.

[cygnus workstation]

at the end of the day it's the middle class that gets scr3wed through inflation' loss of jobs/job security and stagnant wages- a trend that has persisted for decades with the advent of so called 'reagan0mics'

hat tip to http://www.iamned.com

[GetACluepeople]

Obama's not a finance guy he's a freaking lawyer, and Geithner apparently isn't either! My friends who work in the financial sector in Germany and Switzerland expect the coming commercial property collapse will just about sink the US for decades. Their reasoning... US consumers which drive our economy by spending simply have too much debt! Based on that, we began eliminating our debt about a year ago and have shed 70% of it you might want to do the same if you want any type of life or lifestyle!

[jeun28]

Why aren't liberals and conservatives calling for audit into the fed's books?
Why aren't regulations being worked on?
Why is nobody listening to Elizabeth Warren?

[sonofsamphm1c]

Nobody is listening to Elizabeth Warren? I did not know that. Great news.

[WIpatriot]

Also, too (*snark,) she's not listening to your pleas for free toxic assests.

[WebCommoner]

Why is Pat Buchanan in this interview? After what he said about Sonia Sotomayor, why is Buchanan still seeing the light of day on television? The man's credibility is shot, and was shot a long time ago. I don't get it.

[Saidas]

Ditto!