Banks Abusing Your TARP Money

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[Black Star Series: Genesis Of The Financial Meltdown]

Goldman Sachs, Bank of New York, Merrill Lynch, JP Morgan and Citigroup have finally put to use the TARP funds, which Henry Paulson, former Secretary of the Treasury, gladly provided to these impoverished banks.

They are lending $25 billion of your hard-earned money to Pfizer to be used as a bridge loan to finance the $60 billion Pfizer takeover of Wyeth. These firms and others, including Barclays, which received money from the British government, will share with several other firms $220 million in advisory fees.

There are additional questions about the strategic wisdom behind the proposed acquisition. Consider that Pfizer’s super money earning drug Lipitor loses its patent within the next two years. How is Pfizer going to repay this money? Additionally there will be a big dilution of stock as a result of the takeover; the loss of the Pfizer Lipitor patent will result in a huge loss in earnings.

I do not believe that Congress agreed to lend $700 billion to banks so that these same banks could make bridge loans for pharmaceutical takeovers. This is restricting competition in the pharmaceutical industry and shall eventually lead to an increase in the price of prescription drugs.

Has anyone examined their pharmaceutical bills lately?

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