Speaking Out Against TARP

The collapse of the sub-prime lending market sent shockwaves throughout the U.S. economy and, ultimately, the global economy, as well. As the U.S. government scrambled to find a solution, the Troubled Asset Relief Program (TARP) was established to provide a cushion for lenders, in an attempt to keep lines of credit open and prevent the economy from bottoming out. “The point of TARP”, says Consumer Advocacy Group President, Kristy Sinsara, “was to ’stimulate the economy’ by giving money to ‘big businesses’.” However, there may be cause to doubt the effectiveness of this course of action.

However, groups like the Consumer Advocacy Group claim that TARP has been anything but successful in achieving its aim. “We believe,” says Kristy Sinsara, “that the lenders have proven that they can NOT be trusted with the Troubled Asset Relief Funds set aside by the Obama Administration.”

The Consumer Advocacy Group has actively voiced its disapproval of TARP, both publicly and on Capitol Hill. Kristy Sinsara believes that lenders such as Bank of America have not used the funds provided by TARP for their original purposes, nor has the government enforced the guideline it established for TARP recepients. “The lenders (Bank of America especially) have proven that they will only use the money for their own personal gain and have absolutely no individual homeowners’ needs in mind. These lenders have essentially been given a blank check by our government that we as tax payers must pay for,” states Kristy Sinsara.

The Consumer Advocacy Group’s claims stem from the fact that the many of the financial institutions who have receive Troubled Asset Relief Program funding, such as Bank of America, have not used this money for the stated purpose of keeping lines of credit open and extending relief to troubled homeowners suffering under the weight of sub-prime loans. Instead, claims Kristy Sinsara, these financiers have turned around to snatch up other floundering financial entities such as Countrywide and Meryl Lynch.

As part of their push for change, Kristy Sinsara and the Consumer Advocacy Group have been raising public awareness of how TARP funding has actually been spent by lenders. Kristy Sinsara points out that financial entities receiving TARP moneys have turned around to purchase or bail out other financiers like Countrywide and Meryl Lynch, rather than used to benefit individual homeowners struggling to hold on to their homes in the wake of the subprime market collapse.

Not only are these flagging financiers being bailed out, but many of the executives of these collapsed institutions are being provided with substantial exiting packages. These much discussed “golden parachutes” are being provided at taxpayer expense via TARP funds, says Kristy Sinsara. Meanwhile, organizations like the Consumer Advocacy Group are left scrambling to try to help faltering homeowners as best they can.

Kristy Sinsara and the Consumer Advocacy Group have raised a battle cry, along with others across the county. These concerned groups hope to raise awareness about the Troubled Asset Relief Program and to spur the government into reassessing the TARP program to come up with a way to help those who really need it, the homeowners.

For more information on Consumer Advocacy Group visit us at our site. Additionally you can get more information about Kristy Sinsara’s work.